During a recent conference, Coinbase CEO Brian Armstrong made some extremely bullish comments on Ethereum. Better still, he framed ETH as more promising than Bitcoin.
This isn’t surprising Ethereum news for those who’ve been following the cryptocurrency for years.
Armstrong has said, at various times, that his personal portfolio includes more Ethereum than Bitcoin, and that Bitcoin “was my first love, but it did break my heart.” (Source: “E779: Brian Armstrong Coinbase &Tim Draper,” This Week in Startups, November 17, 2017.)
Now he’s on the record saying that Ethereum is “actually doing about double the number of transactions per day as Bitcoin already, and their scaling plans — the roadmap, in my view, is much better.”
But why does this matter? Armstrong is just one guy, after all.
True. Armstrong is not an army, but he is influential. As one of the leading personalities in the cryptocurrency space, he has a megaphone at his command. But more than that, much more than that, he controls one of the most important crypto portals in the world.
Coinbase is the gateway for most U.S. investors starting to invest in cryptocurrencies. And he who controls the exchanges can nudge capital inflows towards certain currencies.
To be clear, I’m not implying anything untoward—I’m merely saying that Armstrong can impact which currencies are listed and receive upgraded functionality. This sounds trivial, but these sorts of things can help boost trading volumes and, in turn, prices.
What’s Going on with Ethereum Prices?
On Wednesday morning, Ethereum prices dipped ever so slightly against the U.S. dollar, bringing the Ethereum to USD exchange rate to $366.64. The Ethereum to Bitcoin rate also fell slightly to 0.04438430 BTC.
How Active Are Investors?
Trading volumes were upbeat on November 21, rising 17.71% from $807.03 million to $949.91 million. This rise in demand typically leads to a bullish movement in ETH prices, but investors grew less active as the night wore on. By morning, the 24-hour volume had fallen to $640.28 million, meaning that last night’s closing number was the top of the pyramid.
Where Is ETH Demand Coming From?
Ethereum has a wide base of geographical support. The leading exchange often switches between Bitfinex, Bithumb, and GDAX. Today’s leader was Bitfinex, a Taiwanese exchange that accounted for 8.63%.
It was followed by a Korean exchange, Bithumb, that drew in 8.26% of ETH trading volume. The third most active exchange for Ethereum was GDAX, which accounted for 6.4% of total volume.
We maintain our $1,000 Ethereum price forecast for 2018.
Source: Price Confidential