- Arthur Hayes favors a quicker surge for ETH than SOL.
- Users believe ETH’s institutional backing is crucial for adoption.
- ETH is trading around a long-term ascending support line.
BitMEX co-founder Arthur Hayes has stirred up the crypto community with his latest prediction, stating that he believes Ethereum’s price will reach $5,000 before Solana achieves the $300 landmark.
Hayes dropped this opinion in a recent post on X, and as you might expect, it got a lot of crypto enthusiasts talking.
One respondent to Hayes’ comment agreed with his prediction, outlining the reasons why Ethereum might have a stronger bullish outlook compared to Solana. According to this user, Ethereum benefits from significant institutional backing, potential support from upcoming ETF developments, and a clearer path in terms of regulation.
What Advantages Does Solana Have, and What Are Its Challenges?
While acknowledging Solana’s speed and high throughput as key advantages for the network focused on scalability, the respondent also pointed out some challenges for Solana. These include its history of network downtime incidents and the perceived influence of venture capital firms on the project.
Hayes’ optimistic outlook for Ethereum comes on the heels of a significant achievement for the cryptocurrency in terms of institutional adoption.
BlackRock, the leading asset management company, has increased its Ethereum holdings under the BUIDL to over $1 billion. That highlights a notable milestone in the cryptocurrency’s institutional adoption.
How Much Ethereum Does BlackRock Hold?
Reports indicate that BlackRock’s assets under management (AUM) in the BUIDL fund climbed to $1.145 billion as of March 23rd, a notable increase from around $990 million in the previous week.
Ethereum constitutes the majority of the capital in BlackRock’s BUIDL fund, with additional allocations across other blockchain platforms like Avalanche, Polygon, Aptos, Arbitrum, and Optimism. Also, Ethereum continues to be the dominant base layer for the burgeoning sector of tokenized real-world assets (RWAs).
Related: BlackRock Buys More ETH as Ethereum Gas Fees Hit Record Lows
From a technical analysis perspective, Ethereum is exhibiting bullish signals by bouncing back from a long-term ascending support line. This significant support line traces back to the COVID-19 market crash, with notable price lows aligning with events like the LUNA collapse and the hack of the Bybit exchange.
Drawing on historical patterns, analysts expect Ethereum to post a notable rebound from around this price level, considering two previous rallies when the flagship altcoin surged 1,400% and 270%, respectively.
Related: Ethereum Price Predictions for 2025: Can ETH Hit $15K?
Ethereum traded for $2,058 at the time of writing, according to data from TradingView. The cryptocurrency bounced off support at $1,754 on March 11 and has maintained a steady rise, gaining over 20% in the past two weeks.
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