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Ethereum (ETH) Report from Coinbase: "Ethereum May Be Preparing for a Significant Move!" Here are the Details

Ethereum (ETH), despite underperforming this year, could make a significant move, according to Coinbase's research report.

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According to Coinbase's research report, Ethereum (ETH), although it has underperformed in the cryptocurrency market this year, may experience a significant rise in the coming months.

The report highlights several factors that could contribute to a positive outlook for the second-largest cryptocurrency by market cap.

So far this year, Ethereum is up 29%, lagging behind Bitcoin's (BTC) impressive 50% rise.

However, Coinbase's analysis suggests that Ethereum's long-term position remains solid and could outperform in the near future.

“Ethereum may have the potential to surprise upwards in the coming months,” the report said, emphasizing that the cryptocurrency does not face significant supply-side pressures such as token unlocks or miner sales.

These factors, which often undermine price stability, are notably absent for Ethereum.

Coinbase analyst David Han noted that the growth of staking and layer 2 solutions has significantly absorbed ETH liquidity.

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“ETH's position as the center of decentralized finance (DeFi) is also unlikely to be displaced in our view by widespread adoption of the Ethereum Virtual Machine (EVM) and layer 2 innovations,” Han added.

The Ethereum Virtual Machine (EVM) is an integral part of the Ethereum blockchain and enables developers to create and interact with smart contracts.

Building on top of the base layer, Layer 2 solutions help alleviate scaling and data bottlenecks, improving the overall efficiency of the network.

Additionally, the potential approval of spot US Ethereum exchange-traded funds (ETFs) could play a pivotal role in boosting Ethereum's market performance.

Coinbase suggests that the market may be underestimating the likelihood and timing of such approvals, providing further upside potential.

*This is not investment advice.

Buradaki Yorumlardan Bildirim Al

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