The cryptocurrency market will experience the first extension cycle with more institutional capital and trading products in the Web3 industry, making digital asset investments more accessible.
Some investors predict a crypto “supercycle” that could override the theory of the four-year crypto market cycle related to half of Bitcoin (BTC), and see that the valuation of digital assets rises beyond this historic time frame.
In the case of ether (ETH), the world’s second largest cryptocurrency, according to Bitmine Immersion Technologies, the world’s largest corporate ether holder, the supercycle could be catalyzed by the increasing adoption of Wall Street’s blockchain technology.
ETH’s first major driver is “Wall Street running to blockchain,” according to Bitmine, ETH’s biggest corporate owner.
Related: BlackRock raking $260 million in annual revenue from EtherETFS Bitcoin
Despite optimism about a potential supercycle, not all Wall Street participants are so bullish on the ether price trajectory.
Citigroup, a US investment bank, has set a year-end price target of $4,300 for Ether. That’s well below ETH’s all-time high of $4,953 on August 24th.
ETH/USDT, the best chart ever. Source: CointeLegraph/TradingView
“Current prices exceed activity estimates and could be driven by recent purchase pressure and excitement over use cases,” City wrote in a Monday memo seen by Reuters.
Ether has risen about 108% over the past six months and is trading at $4,177 at the time of writing, TradingView data shows.
Related: Machi Big Brother ends $25 million hype with a loss of $4 million when rivals eat high fat market share
AI agents considered catalytic
Bitmine sees the growing adoption of agent artificial intelligence protocols as the second potential catalyst in the incoming Ethereum supercycle.
AI agents need “neutral platforms” such as public blockchains, which could bring more applications to Ethereum, the largest smart contract platform.
“For AI to be truly valuable, it has to be an economic actor. So AI agents must be able to buy things and get money,” says Ben Horowitz, co-founder and general partner of venture capital firm Andreessen Horowitz (A16Z).
“If you’re AI, you’re not allowed to have a credit card,” Horowitz said on Tuesday’s X-Post. “Cryptocurrency is like an economic network of AI,” he added.
“Credit cards don’t act as AI money, so it’s logical, internet native money is a code.”
sauce: A16Z
An AI agent is a software program designed to automate and perform specific tasks on behalf of a user.
Autonomous on-chain agents interact with blockchain protocols, enabling functions such as trading, token swap, portfolio management, and allowing engagement with decentralized finance platforms.
Some of the largest fintech companies invest in AI agents. On September 2, PayPal Ventures led Series A funding to decentralized AI infrastructure provider Kite AI, raising $18 million to raise cumulative funds to $33 million, Cointelegraph reported.
https://www.youtube.com/watch?v=6g35ewcewum
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