In its August cryptocurrency forecast, Bloomberg was unaffected by Ethereum and described its rally as “speculative”. However, the post claims that the Bitcoin (BTC) increase was built on solid foundations:

“Ethereum has expanded its highs last year to become one of the best performing crypto assets in 2020. However, we are seeing the rally as more speculative compared to the favorable supply and demand conditions that support Bitcoin.”

Ethereum competition
The report notes that Ethereum faces “a lot of competition from similar crypto platforms and around 6,000 tradable currencies”. On the flip side, Bloomberg has remained consistently bullish about Bitcoin, citing its gold-like properties and increasing institutional demand.

The success of the DeFi space has led to Ether being appreciated, compared to the ICO boom. The mature the contract platforms, the more difficult the competition will be. When it comes to the world of professional investors, Ether has no clear selling point like the limited supply of Bitcoin.

Source: CoinTelegraph