The rapidly growing cryptocurrency Ethereum has experienced a slight decline in market capitalization due to the platform's transition to the upgraded version known as Ethereum 2.0. This assessment comes from experts at OKEx, who noted a reduction in the influx of investors.
According to the report, the new version, Ethereum 2.0, will be beneficial for the entire cryptocurrency ecosystem as a whole. However, the uncertainty surrounding the transition is somewhat hindering investment inflow from major players. The shift to the new version will take a considerable amount of time, allowing other blockchain platforms operating on smart contracts to gain an advantage.
OKEx Academy staff highlighted an additional interest from investors in other products similar to ETH. For instance, at the end of 2020, the firm 3iQ launched an exchange-traded fund based on Ethereum called The Ether Fund, which was listed on the Toronto Stock Exchange. Since then, similar products have been created by Galaxy Digital and CoinShares. Additionally, the blockchain asset manager Evolve Funds waived the management fee for their ETH fund, which stood at 0.75%, until the beginning of June 2021.
As a result, Ethereum's price at the beginning of May 2021 reached nearly $3,500. However, given the aforementioned developments, a slight decrease in the cryptocurrency's value is anticipated.
