-What is cryptocurrency?
-Why do Investors invest in Ethereum?
-Top 5 institutions to hold Ethereum
The crypto stocks have plummeted like crazy in the past two years. Despite the pandemic, recession, and everything else crypto assets saw a boom in their values. Although there were many who opposed cryptocurrencies and called it the next bubble, a lot of investors put their faith in it. The faith was such that some of the big institutions and hedge funds even joined the crowd of cryptocurrency holders.
Bitcoin, being the leader of the cryptocurrency is not the only crypto in which institutions are investing. Many hedge funds and institutions have been bullish towards Ethereum. Ethereum the blockchain protocol that is revolutionizing the blockchain, DeFi, and DApp industry is one of the most sought-after cryptocurrencies. Let us understand why institutions are interested in investing in Ethereum and the top 5 institutions to hold Ethereum.
Ethereum: The second Largest cryptocurrency in Market capitalization
Ethereum is a blockchain network that has its focus primarily on running the programming code of any decentralized application. In simple words, it’s a platform via which information can be shared across the globe without any manipulation.
It is a decentralized cryptocurrency that also goes by the name of Ether (ETH). Apart from being a tradable cryptocurrency it also provides the necessary power to the ethereum network by providing transactional fees for computational services. It is one of the blockchain technologies that are responsible for numerous defi projects and new defi protocols.
Ethereum enthusiasts wish to hand over the power back to the users with the use of this decentralized system. Blockchain technology has the potential to revolutionize the world.
Ethereum blockchain-based network is primarily used to provide support to the world’s second-largest cryptocurrency after Bitcoin, Ether. Ethereum can be used to send and receive value across the globe without the intervention of third parties.
The main utility of Ethereum today is the value exchange. This is often put to practice through the native token of the blockchain, Ether (ETH). This cryptocurrency is of interest to many developers due to its long-term potential and ambitious vision. Ethereum gives more control to users of their online data and finances. Although it has faced its fair share of criticism, it has the potential of becoming the next revolution in technology.
Also, read about the Top 20 Institutional investments in cryptocurrency.
Why do Investors invest in Ethereum?
Ethereum is the technology, while the cryptocurrency is Ether. Before investing in any asset it is significant to analyze its value. Rather than asking why a certain cryptocurrency should be bought, investors must know if a certain crypto coin has value. Some of the factors that make Ether (ETH) of high value are:
Volatility: While this was seen as a risk in the case of fiat currencies, intelligent investors have made the most out of these volatile markets. This was evident from the bull run seen in 2020.
Liquidity: Ethereum, indeed, is one of the most liquid investment assets across the globe. Ethereum can be easily traded through decentralized exchanges and protocols in a matter of a few minutes. Ethereum can also be traded quite instantly for other fiat currencies at a very low fee.
Less inflation risk: Unlike the other fiat currencies, these cryptocurrencies are not regulated by institutions or government bodies. Therefore, Ethereum is transparent to inflation.
Also, read about the top 5 influencers holding Ethereum.
Top 5 institutions to hold Ethereum
MetLife, Inc. is a New York-based life insurance company. n June 2019, Singapore-based Lumen Lab, owned by MetLife, announced that it would be using Ethereum cryptocurrency to debut a new contract platform known as Lifechain to settle insurance claims. Zia Zaman, the CIO of MetLife Asia and CEO of LumenLab at the time, said that the future of distributed ledger technology in life insurance was dependent on public sector involvement.
This insurance company has been bullish on Ethereum ever since it adopted the technology.
Here are the top 5 institutions bullish on Bitcoin.
Cisco Systems, Inc. is a California-based technology firm that makes and sells hardware, software, and telecom equipment. It was founded in 1984. Cisco was one of the first firms that jumped on the crypto bandwagon, joining the Enterprise Ethereum Alliance back in 2017 that has connected enterprises, startups, and academics with Ethereum subject matter experts. In 2019, it also released a report titled Blockchain that discussed crypto adoption on a global scale. It is one of the top tech giants that are bullish on Ethereum.
Accenture plc is an Ireland-based company that provides consulting and processing services. The company markets Ethereum-based blockchain solutions to businesses to make it easier to process payments. The firm has also invested in the Digital Dollar Project in partnership with the Digital Dollar Foundation to advance the exploration of a Central Bank Digital Currency (CBDC) in the United States.
Accenture just like Cisco is another tech giant that has understood the power of cryptocurrency and is one of the top institutions that are bullish on Ethereum.
Intel Corporation is a California-based technology company that makes and sells products used in electronic devices, cloud data centers, and other smart solutions. Intel is one of the top firms investing in Ethereum through the development of special processors that are used in blockchain mining. Squirrels Research Labs, a world leader in blockchain, uses Intel processors for mining the second most popular cryptocurrency in the world.
Intel has been quite open about its inclination towards Ethereum. It is another big institution bullish on Ethereum.
Mastercard Incorporated is a New York-based financial services company founded in 1966. In April, Raj Dhamodharan, the executive vice president of digital asset products at Mastercard, told Business Insider that Ethereum was a key infrastructure on which the company was building payment and non-payment applications to power the future of commerce. Mastercard was even on news about funding Ethereum startup studio ConsenSys.
Just like Tesla and Alpahbet Inc, Mastercard is one of the top companies that are bullish on Ethereum.
Also, read about the top 5 influencers holding Bitcoin.
The Final Takeaway
The Ethereum bandwagon has been ridden by every other top institutional firm. While a few sold a part of their assets, most of them are still holding their Ethereum. These Ethereum giants are primarily the ones who control the sentiment around Ethereum, given the influencer’s one tweet can lead to a fall in the prices of the cryptocurrency. That was all we had to tell you about the top institutions that are bullish on Ethereum.
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