The Bitcoin (BTC) versus Ethereum (ETH) supremacy battle just took a new twist with Coinbase wading into the discourse. The trading platform dedicated its latest Monthly Outlook to address the tailwinds surrounding digital currency.
The Ethereum (ETH) Luster Outlined
In the Year-to-Date (YTD) period, Ethereum has grown by only 33.66%, a figure lower than Bitcoin’s 57%. Besides this, the current ecosystem outlook on Ethereum remains bearish. This is because the United States Securities and Exchange Commission (SEC) is looking to label the underlying ETH coin as an investment contract.
Despite the relatively slow start to the year, Coinbase said it believes that the best is ahead for Ethereum. The exchange’s Institutional Research Analyst David Han said Ethereum has what it takes to topple other competing smart contracts in the ecosystem this second quarter. At the time of writing, Ethereum is changing hands for $3087.85, up by 5.02% in 24 hours.
According to Han, Ethereum has a very well-developed Solidity Ecosystem and its utility as a DeFi collateral has further placed it as a relevant protocol. The researcher also named some other advancements that can contribute to the bullish thesis on ETH.
“We continue to believe that Ethereum’s long-term positioning remains strong and that it has important advantages that meaningfully distinguish it from other smart contract networks,” David Han wrote in the report, adding that, “these include the maturity of Solidity’s developer ecosystem, the proliferation of its EVM platform, the utility of ETH as DeFi collateral, and the decentralization and security of its mainnet.”
He also emphasized the decentralized nature of Ethereum (ETH) as a major boost that can uplift its embrace in the long term.
Debunking SEC Claims
On behalf of Ethereum, there are a lot of industry supporters calling out the regulatory over-reach of the SEC. ConsenSys for instance has explored a legal pathway to fight on behalf of Ethereum.
The general uncertainty surrounding spot Ethereum ETF has forced Grayscale to withdraw its Ethereum Futures application as reported by Crypto-Vanguard. Also, the Dogecoin founder Billy Markus has expressed pessimism on the likelihood of securing approval for the product this month.
In all, the Coinbase outlook for Ethereum bears a subtle emphasis on its decentralization status. This narrative has helped debunk the regulator’s securities claims in a major way.