A crypto analyst asserts that Ethereum ETFs are a call option for the growth of Web3.

A cryptocurrency expert argues that Ether has a significantly greater potential user base compared to Bitcoin due to its role as a potential investment in the Web3 industry.

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According to a cryptocurrency analyst, recent uncertainty regarding defining Ether in a clear way for the purpose of selling Ether spot exchange-traded funds (ETFs) may now have a simple value proposition: the ability for investors to speculate on the future growth of Web3.

In a report on May 28, cryptocurrency analyst Michael Nadeau stated that ETH is a way to invest in the advancement of Web3 technology, similar to a call option or a high-growth index for Web3 adoption. He also mentioned that Bitcoin is often referred to as “digital gold.”

Based on data from Grand View Research, the Web3 sector is projected to generate $33.5 billion in revenue per year by 2030.

Nadeau suggested that Ethereum may have a greater potential to reach a larger market when comparing it to the two leading cryptocurrencies from an investment standpoint.

According to Nadeau, Ether may surpass its previous peak of $4,870 in November 2021 once spot Ether ETFs become available. This is similar to the increase in demand for Bitcoin seen after spot Bitcoin ETFs were launched in January.

The Ethereum validators stand out as they do not incur significant operational costs like Bitcoin miners. As a result, they are not compelled to sell in order to cover expenses, which places further strain on the demand.

“Ethereum does not face the same degree of ‘structural selling pressure’ as Bitcoin, as Ethereum validators do not have to cover operational costs like Bitcoin miners.”

He further pointed out that Ether responds more strongly to positive feedback loops than Bitcoin (BTC).

The speaker asserted that the concept of reflexivity can be described as a cycle where the movement of prices dictates on-chain transactions, resulting in increased burning of ETH. This, in turn, can fuel related stories, further driving price movements, on-chain activity, and burning of ETH.

According to Nadeau, Ethereum has stronger network effects than Bitcoin and offers investors the chance to stake and earn yield with Ether, something that Bitcoin does not have.

The statements were posted on the same date as a potentially record-breaking transaction involving the staking of Ether.

According to Etherscan data, $500 million worth of Ether was placed on Lido on May 28.

According to Arthur Cheong, the founder of DeFiance Capital, there is a high probability that the record for the largest sum of ETH staked in a single transaction was broken on May 28.

Ethereum has been criticized by multiple cryptocurrency analysts who argue that it does not have a clear selling point, unlike Bitcoin’s widely promoted “digital gold” narrative.

According to Glassnode’s lead analyst James Check, Ethereum has not yet been able to sum up its purpose concisely, even after numerous attempts over the years.

Eric Balchunas, an analyst at Bloomberg ETF, pointed out the attractiveness of Bitcoin as a digital form of gold and questioned if there is a similar concise statement for Ether. If there is, what would it be?

This article is not offering investment suggestions or guidance. All investments and trading activities carry risk, so it is important for readers to conduct their own research before making a decision.