Zooming out over a five-year period, ETH’s total returns stand at 17,962%, while BTC has gained 5,119%.
Institutional interest in Ether is growing, according to Coinbase.
“Many of our largest institutional clients, including hedge funds, endowments, and corporates, increased or added first-time exposure to ETH in H1, believing the asset has long-term staying power tantamount to BTC’s, while playing a differentiated role in their portfolios.”
What’s Driving ETH Right Now
There are several factors that are being attributed for ETH’s remarkable surge: The recent bull run in the crypto markets, healthy demand for NFTs, and rising demand for decentralized finance protocols.
Coinbase said the increasing use of Ethereum-based DeFi protocols “validates the network’s value as a global financial utility and platform for developers.”
The exchange’s report added that there is growing investor optimism in the upcoming switch to a Proof-of-Stake consensus mechanism, which will turn ETH into a yielding asset. Other upbeat developments include the imminent introduction of EIP-1559, which will help make ETH deflationary, and scalability solutions that are helping to alleviate congestion.