Ethereum could be the silver lining in the crypto space

Ethereum has been one of the best performers in the market in recent weeks and is currently trading above $1,600 per coin.

BTCS Inc. Chief Executive Officer Charles Allen told CoinDesk TV in a recent interview that he believes Ethereum might e the silver lining in the cryptocurrency ecosystem.

When asked about his thoughts about Ethereum, Allen said;

“I think Ethereum could definitely be the silver lining here. We’ve seen Ether down below $1,000, and it is now back up into the $1,600 range. The options activity in Ethereum surpasses that of Bitcoin in recent weeks 

I think all of these hinges around the upcoming Ethereum Merge, which would see the Ethereum network move to a proof of stake mechanism next month from a proof of work. “

Allen added that it would be a huge deal for the Ethereum ecosystem to move to a more sustainable blockchain. 

He argued that Ethereum is a bigger player in the cryptocurrency industry compared to Bitcoin. 

While many consider Bitcoin to be the hedge against inflation in the crypto space, Allen said Ethereum’s role in the rise of decentralised finance (DeFi) and nonfungible tokens (NFT) shows just how important Ethereum is to the broader cryptocurrency market.

Ether’s recent rally has seen the cryptocurrency add more than 40% to its value in recent weeks. When asked if the rally is driven by retail or institutional investors, Allen said he believes it is both. He said;

“I don’t have specific data on who is really driving this rally, but from the institutions and individuals I’ve talked to, I believe it is a combination of retail and institutional investors. However, most institutions are sitting on the sidelines and monitoring how the crypto market is currently performing.”

The cryptocurrency market performed positively last month, pushing the total market cap back above the $1 trillion mark.

Bitcoin struggled below the $20k level a few weeks ago but has been trading above $22k in recent days.