Bloomberg: These 2 Altcoins Outpace Ethereum!

Bloomberg's commodity strategists say that some altcoin projects will surpass the leading altcoin Ethereum.
 Bloomberg: These 2 Altcoins Outpace Ethereum!
READING NOW Bloomberg: These 2 Altcoins Outpace Ethereum!

Bloomberg’s commodity strategists say that some altcoin projects will surpass the leading altcoin Ethereum. They specifically state that a particular metric supports their argument. Here are the details…

What will leave the leading altcoin ETH behind?

In the Bloomberg Intelligence: Crypto Outlook report, Mike McGlone and Jamie Douglas examined the cryptocurrency market. They say that Ethereum has a strong dominance in the market, especially in terms of its fee structure and coin production system. However, analysts report that the two altcoins outperform Ethereum. They point to two chains, Polkadot (DOT) and Cosmos (ATOM), which are particularly focused on scaling and communicating.

According to the report, ETH has a dominant market share in fee income and sound monetary policy. Based on this, it seems likely that pricing risk will begin in ETH according to the real/adjusted rate of return. In Bloomberg’s list of layer-1 crypto assets, only these two networks surpass ETH. These networks have real returns trading with a positive spread against Ethereum’s benchmark rate of 5.03 percent.

According to the scales of Bloomberg experts, Polkadot is trading at a premium of 0.77 percent, while Cosmos is trading at a premium of 0.10 percent. However, assets traded at negative spreads can fall victim to mispricing. According to analysts, inflation/issuance for these assets may need a radical reduction in production similar to Ethereum to attract more capital.

Analysts drew attention to the importance of staking

Also, Bloomberg analysts drew attention to staking. They say staking brings a new dimension to crypto investment. They even compare staking to investing in corporate bonds. According to experts, it is very important for crypto to emerge as an asset class with a return component. In this way, it offers investors new insights into the risk/reward opportunities in this area.

It also makes a bond analogy with the volatility and novelty of demand for smart contract use. Analysts reiterate that proof-of-stake returns are similar to corporate bonds in that they depend on fees and cash flows. According to analysts, central bank liquidity may improve in the first half of 2023. Therefore, they expect an increase in staking returns as well.

Currently, ETH is changing hands at $1,315, down 0.2 percent. On the other hand, Polkadot (DOT) is trading at $6.40, up 0.9 percent. Cosmos (ATOM), on the other hand, showed a 0.9 percent change in the last 24 hours and fell to $13.04. Still, as we reported on Cryptokoin.com, these cryptocurrencies have been bullish on a seven-day scale. ETH is up 2.9 percent in the last 7 days, while DOT is up 3.6 percent. Finally, ATOM saw a one-week increase of close to 9 percent.

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