Ethereum Will Continue to Shake up Global Financials

According to Bloomberg’s chief commodity strategist Mike McGlone, the dominant smart contract platform, Ethereum (ETH), is set to further shake up global financials and its technology.

In a new interview with BNN Bloomberg, McGlone explained that he believes Ethereum’s value is supported by the fact that dollar-pegged stablecoins require the network to function.

The U.S. dollar, McGlone said, is the world’s most traded crypto token supported by Ethereum, which is effectively revolutionizing the financial technology industry. He detailed:

“Basically, the dollar is the most widely traded crypto. It trades more than Ethereum and Bitcoin together. And that is because Ethereum tokens are making this possible.” 

According to the Bloomberg expert, ETH will begin to rise versus Bitcoin (BTC) due to dwindling supply and rising demand. McGlone noted that a positive supply to demand ratio suggests that the price of ETH should be going up therefore. He said:

“That trend of Ethereum still outperforming Bitcoin remains intact so it’s been hovering around this good support around $1,000, good resistance at about $2,000, but what it did this year was somewhat revolutionary.

It switched to a proof-of-[stake] platform which means virtually no consumption of energy amidst an energy crisis. Wow, that’s kind of win-win, so you’re doing well there. The key thing that I look at from a commodity standpoint is: ‘What’s going on with supply and demand?’

McGlone adds that the top cryptocurrencies are still gaining traction among the wider public stating:

Supply is clearly going down and heading lower, and demand and adoption are clearly heading higher so I look at it as, unless something changes in those trends, price must go up over time. I look at price, it’s relatively too cold. It should go back up and continue to outperform Bitcoin. It has been outperforming things like the Nasdaq over time and what’s significant is that it’s been doing it with incrementally lower volatility. What does that mean? It’s migrating into the mainstream with maturation.”

In a recent interview, CEO and co founder of one of the world’s largest cryptocurrency exchanges, FTX, Sam Bankman-Fried stated that it is highly likely that his firm will create its own stablecoin in the near future.

At time of writing, Ethereum is trading at $1,579 according to CoinMarketCap data, good for gains of over 17% over the last seven days.