Investing.com – In his 2023 Cryptocurrency Forecast released earlier this week, Bernstein analyzed the state of the second-largest cryptocurrency in the market by market capitalization, highlighting the resilience of the cryptocurrency in 2022 and highlighting its potential to be.
“Ethereum remains the most resilient asset in the bear market,” analysts noted, believing that “this is because the brutal bear market has tested its competitors enough for the market to turn to Ethereum as the most resilient blockchain benchmark.”
Bernstein’s analysis also notes that “Ethereum is also the most complete set,” including “multiple layer two ecosystems that enable scalability and layer two blockchain application economy supported by the Ethereum backlog economy.”
Thus, they judged that Ethereum “answers all of the major criticisms leveled against blockchains,” stating that “Utility is provided by applications, and scalability is provided by Layers 2 and 1. The blockchain economy is driven by a sustainable business model, bringing intrinsic value back to Symbol holders.
Against this backdrop, the company’s analysts predict that “Ethereum’s strength will continue, with growth in the application economy driven by layer-2-focused ecosystems such as Arbitrum.”
Analysts also questioned the possibility of Ethereum overtaking Bitcoin in terms of capitalization, noting that it “seems likely in theory,” but they believe that a “potential monetary pivot in the global economy” would benefit Bitcoin more, which has a “longer history” and “greater institutional reach.” With “more liquidity than any other crypto asset”.
Bernstein thus concluded that Ethereum “in theory” should overtake Bitcoin “very soon,” adding: “But in practice, who knows?”.