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Ethereum Needs To Clean Its Value Proposition – Coinbase

While ethereum (ETH) outperformed and was more volatile than bitcoin (BTC) in 2020, and as decentralized finance (DeFi) is expected to expand it further, the ETH community still needs to try harder in clarifying the Ethereum narrative, according to major crypto exchange Coinbase.

Ethereum’s “design properties, value propositions and potential future states are less widely understood by the market,” the company said in their 2020 in review report.

While bitcoin is now mostly seen as digital gold, Coinbase stressed that there is “the need for the [ETH] community to settle on a clearer, simpler narrative that can be easily understood by newcomers.” This project’s narrative is still evolving and the company expects to see it form in the coming years.

Meanwhile, Ethereum’s story is convoluted, they said, with investors evaluating the potential value of network’s future use cases, how gas fees may correlate with such usage and drive demand for the ETH token, and Ethereum’s supply and issuance schedule.

Just recently, as reported, popular generalist investor and bitcoin investing app Swan Bitcoin advisor, Lyn Alden, also described Ethereum as an unfinished product with changing core underlying mechanics and a changing monetary policy.

While most institutional clients bought bitcoin in 2020, said Coinbase, “a growing number” of them also took a position in ETH. The case for owning Ethereum the exchanges’ clients give most often is a combination of:

    New ETH ATH, entire DeFi landscape set to see explosive growth.

    — Jeremy Allaire (@jerallaire) January 25, 2021

    Meanwhile, Galaxy Digital CEO Mike Novogratz sees a new price target and all-time high for ETH to hit – USD 2,600 – though the time frame is unclear.

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