Ethereum has once again captured everyone's attention, especially when crypto legend Arthur Hayes made significant predictions about its future, use in institutions, and price.
During this time, Ethereum is trading at around $3,200.
Ethereum is becoming the first choice for institutions.
Arthur Hayes says that the market has not yet understood how extensively banks and large companies are going to adopt Ethereum.
according to them:
For several years, banks have tried private blockchains
but eventually they realized that security can only come from Public Blockchain
That's why most institutions will now use Ethereum as a Settlement Layer
Stablecoins have forced banks
The extensive use of stablecoins has shown banks that:
On-chain transactions are faster
more secure
and is cheaper
According to Hayes, Ethereum is the only blockchain that:
security
liquidity
developer community
is strong in all three aspects — that's why institutions prefer it.
Institutional buying is rapidly increasing
The large company BitMine has:
This week 33,504 ETH (112 million dollars)
and in December 138,452 ETH (435 million dollars)
purchased to bring their total holdings to 3.86 million ETH.
This shows that institutions are rapidly accumulating stock for the next ETH cycle.
#Ethereum 's biggest shortcoming — Privacy
Hayes believes that:
Ethereum does not yet provide full privacy
This is essential for large companies
but he says that:
Privacy is coming soon
Vitalik Buterin has included it in the Ethereum roadmap
and until then:
institutions will use privacy-focused Layer-2s
while Settlement will always be on Ethereum Layer-1
