So far this year, we’ve already seen Bitcoin split into two and form Bitcoin Cash.
Now Ethereum, another popular cryptocurrency that also uses blockchain technology, is expected to split on October 17.
In Ethereum’s last update during 2016, the fork led to a split and created Ethereum Classic. Ethereum now has a market cap of $27.8 billion as it heads toward its October split.
Cryptocurrencies are maturing rapidly
Ethereum, of course, is not alone in its momentum.
Ryan Radloff, head of investor relations at XBT Provider explains that we are seeing that the crypto-asset space beyond Bitcoin is maturing very fast and that some “investable contenders” are emerging, even if fledgling.
“That said, we believe in the next 18 months, a handful of the crypto-assets currently in the top ten by market cap will also begin to demonstrate enough market depth and breadth to attract large institutional investors like Bitcoin has attracted over the last 12 months,” said Radloff.
Ripple and Litecoin, among others, are getting set for primetime on the cryptocurrency stage.
Ethereum is very different
Of course, Ethereum is currently the prince to Bitcoin’s king.
Part what helps it is the easy analog of Ethereum to another beloved commodity — in a similar fashion that Bitcoin has a real world comparison.
Radloff explains that while his group may asses a portfolio allocation of Bitcoin, similarly to that of gold, they look at Ether differently: similarly to oil.
“Since ether is required to operate the Ethereum virtual machine (EVM) – ether is referred to as the ‘fuel’ to the EVM engine – our long term approach to valuation looks similar to that of assessing a traditional commodity such as oil – we begin by modeling utility growth of the EVM and thus future consumption of ether,” said Radloff.