Ethereum like Amazon from the 90s? Experts see the platform’s huge potential

Despite the bad situation on the ETH chart, 21Shares experts believe that the entire platform reminds them of… Amazon from the 1990s.

Ethereum is the new Amazon?

Ether hasn’t been doing well lately – it’s worse than Bitcoin on the chart. On the one hand, this is normal in this phase of the cycle, on the other hand, it certainly does not make hodlers happy. However, according to an expert from 21Shares, it is worth remaining the latter. She told Cointelegraph that Ethereum is “complex, like Amazon in the 1990s — promising huge potential, but less straightforward in its use cases.”

What exactly is this about? That, according to Federico Brokate, vice president of 21 Shares, Amazon started as an online bookstore but has transformed into “a global e-commerce and cloud computing giant, changing the way we shop and use digital services.” . Ethereum started as a core smart contract platform and today powers over $140 billion in decentralized finance applications.

If we were dealing with Amazon 2.0, the potential for growth would be huge: Ethereum’s market capitalization today is USD 320 billion, so it is only 6.25% of Amazon’s USD 2 trillion valuation.

In addition, it is already clear that the mainstream is reaching for Vitalik Buterin’s network: BlackRock tokenizes money market funds worth over USD 533 million using Ethereum, and on November 1, Union Bank of Switzerland introduced its tokenized fund based on this technology to the market.

Problem with the concept of genius?

Brokate believes Ethereum’s problem is that “only a few investors understand (its) potential” and many have chosen to “stay on the sidelines.” However, this is about to change.

(…) we remain optimistic that as the market matures and Ethereum’s diverse use cases develop, investor sentiment and adoption will follow a similar sustainable growth path

– he added.

Currently, inflows to ETH ETFs are also disappointing, accounting for only 9% of what goes to their bitcoin counterparts. However, in a few months the situation may look different when the market considers bitcoin to be an “expensive” asset and investors will look for something cheaper and equally available.

Another problem, however, is the network’s declining revenues. CK Zheng, chief investment officer of hedge fund ZX Squared Capital, told Cointelegraph that these may not appeal to many Wall Street investors. Brokate, however, claims that this should not worry: Amazon also went through a crisis in the late 1990s, from which it emerged victorious. In addition, Ethereum is starting to attract investors in an indirect way – using layer 2 solutions.

Will all this together give us a big boost in the ETH/BTC pair in a few months? It’s possible. More important, however, is the long-term development of the network, which Vitalik Buterin and his people are working on.