Nearly half of the North American respondents believe Ether can outperform Bitcoin.
The global investment firm Fidelity Digital Assets recently unveiled its second-quarter report for 2023, providing a robust outlook for Ether (ETH) over the next year and beyond.
However, the report highlighted that although ETH's performance in 2023 has seen a 62% increase, the statement cautions that the current bullish trend may not persist indefinitely. However, the overall long-term stance remains positive.
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The firm's bullish outlook for ETH is backed up by some interesting findings in the network data.
One of the key metrics observed is the higher rate of Ethereum coins being burned compared to their issuance. Also, the report notes the increasing trend in the creation of new Ethereum addresses, pointing to a growing user base.
Fidelity Digital Assets' report indicates that the Ethereum network saw its net supply decrease by over 700,000 ETH following the Merge in September 2022.
Glassnode data cited in the report further underlines Ethereum's growth trajectory, demonstrating a surge in first-time Ethereum transactions, a promising sign of increasing network adoption.
The Fidelity report highlighted a 15% growth in active Ethereum validators in the second quarter, enhancing the network's overall security and decentralization.
Nonetheless, a note of caution is sounded with Ether's quarterly futures revealing some unease among traders. Fixed-month contracts typically command a 5% to 10% premium compared to spot markets due to the delayed settlement. Data from Laevitas indicates that the three-month futures premium for Ether is currently standing at a below-average 4%, implying traders' reluctance towards leveraging bullish ETH positions.
However, the CryptoVantage survey found that nearly half of the 1,000 North American respondents who have invested in cryptocurrencies over the past five years identified Ether as the most likely contender to outperform Bitcoin (BTC).
However, this viewpoint should be taken with a pinch of salt as the survey didn't specifically ask respondents about the odds of Ethereum "flipping" Bitcoin.
While Fidelity Digital Assets' analysis provides substantial reasons for its bullish stance on Ethereum's price over the next year, high gas fees and lack of interest from leverage buyers in the short term could increase the likelihood of Ethereum's price falling below the channel support.
At the time of writing, Ether (ETH) retails for $1,910.21, recording a 0.63% increase in the last 24 hours and over 1% increase in the last seven days.
