What happened: The second-largest cryptocurrency by market cap, Ethereum (ETH), reached a new all-time high of $1,900 earlier today.
This new high means that ETH is officially up 2000% since March 2020, while Bitcoin (BTC) is up by 1200%.
Why it matters: In the wake of Bitcoin’s disruption, the second-largest cryptocurrency might have been overlooked by newer investors in the crypto space.
However, many analysts and crypto industry proponents believe that at current levels, ETH is undervalued.
Leading digital asset manager Grayscale recently opened its Ethereum trust to accredited investors and has since been buying large amounts of ETH each day.
On February 12, the asset management firm bought 52,730 Ethereum, which over $94 million worth of ETH, or $8 million worth of BTC.
Institutional buying and the belief of industry proponents aside, the asset did receive some new backing from popular investors.
Billionaire tech investor Mark Cuban recently stated that “ETH has an advantage over BTC as a store of value.”
The Dallas Mavericks owner is most excited about smart contracts that are developed on the Ethereum blockchain, powering decentralized applications (dApps) and decentralized finance (DeFi).
According to Cuban, most of this innovation is happening on Ethereum, which leads him to believe ETH is becoming a better store of value than BTC.
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