Ethereum (ETH), the world’s second-largest cryptocurrency by market valuation, could soar to $10,500, according to Fundstrat Global Advisors strategist David Grider.
What Happened: Grider sees Ethereum as “the best risk/reward investment play in crypto,” as reported by Bloomberg.
Ethereum is the largest blockchain platform that came to prominence with smart contract applications. A lot of the recent interest in the cryptocurrency is driven by decentralized finance, or DeFi, applications.
See also: How to Buy Ethereum (ETH)
Besides the rise of DeFi apps, Ethereum is also likely to benefit from its network upgrade that would allow it to process as many transactions as Visa Inc. V or Mastercard Inc. MA, Grider noted.
“Blockchain computing may be the future of the cloud,” as per the Fundstrat strategist.
Why It Matters: Ethereum has outperformed Bitcoin (BTC) in 2021 so far, hitting an all-time high of $1,432.44 earlier this week.
The cryptocurrency is leading the pack of smart contract- and DeFi-related digital assets that are seeing a surge of late, including Polkadot (DOT), Aave (AAVE), SushiSwap (SUSHI), Uniswap (UNI), and Curve Dao Token (CRV).
At press time, Bitcoin traded 2.6% lower at $34,339.31.
Ethereum is trading 4.4% lower at $1,290.39. Grider's price target represents a 714% premium over the current price.
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