There are an increasing number of operators and executives of some big crypto firms are betting on ehtereum. This included Coinbase and Circle that are showing more optimism in the recent past. This is despite the market cap being roughly 63 percent lower than the leader, bitcoin. If the report is true, then the second top digital currency is having more circulating supply than the leader. The increased focus could be more to do with the ecosystem and the potentials of developing more apps.
Increase Adoption of Blockchain
Coinbase, which is tagged with enjoying $8 billion worth of digital currency brokerage firm, and Circle with its $3 billion payments and exchange platform, are continuing to repose faith in ethereum. That is because the two of the biggest virtual assets exchange bets on the growth prospects and the vibrant ecosystem of the crypto currency. Another reason is that thousands of developers are engaged in creating decentralized applications (dApps). This will translate into the rapid growth in the adoption of the blockchain technology.
The two digital coin exchanges’ CEO expressed their opinions recently that the next rally in the virtual currency sector could come from none other than ethereum. Jeremy Allaire, CEO and co-founder of Circle, told Fast Money program on CNBC that it was mainly on the mammoth activities that developer undertakes on the blockchain ethereum platform. Their confidence is quite evident when a number of analysts disclosed that there are over 300,000 developers on the ethereum network. This will mean there is potential for more apps to hit the market.
As if that is not enough, the network is adding over 50,000 developers every month from May attracting analysts and experts. Interestingly, Aragon CEO and founder, disclosed in July 2017 that he could see a good rush from developers thronging the network to learn the coding language of digital coin. Another interesting fact that he pointed out is that there was no single developer from ETH network who is not a millionaire currently.
Allaire is engaged in overseeing the development of Circle as a payments firm from a digital currency brokerage firm. He indicated that his confidence about ethereum was because it is a base layer for several kind of blockchains, ccn.com reported. Therefore, dApps are going to be very important in the crypto’s long-term growth. The firm is re-entering the virtual asset space.
New Financial Contracts
Allaire commented, “One of the things that really catalyzed the [cryptocurrency] market last year was actually that ethereum, in particular, kind of got to a place where you could build apps on top of it. You could issue new tokens on top of it; you could create new kinds of financial contracts, using the smart contracts technology. It also catalyzed a lot of competing infrastructures to ethereum.”
Similarly, Coinbase CEO, Brian Armstrong, has expressed his optimistic view on the ethereum network. He has been a vociferous supporter of the network since late last year. This was also evident when he disclosed that he owns more ether than bitcoin. There are other companies betting on the growth prospects in the next couple of years.