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ARK Invest’s Cathie Wood says it’s clear that Ethereum (ETH) is satisfying a huge unmet need in the digital asset space.
In a new interview with Bankless, the noted investment management firm founder says that ETH is showing up as a strong second to Bitcoin (BTC) as a potential reserve currency.
“I have been surprised at how Ether and the Ethereum network is mushrooming with stablecoins, NFTs, decentralized finance. It’s clearly satisfying a huge unmet need.
One of those needs is yield… and we see that in the fixed income markets, the ridiculous rallies that have taken place. Taking junk bond yields down to just a couple of hundred basis points above treasuries, that’s kind of nuts. This hunger for yield is being satisfied by a much more efficient financial ecosystem.”
Wood compares how Bitcoin and Ethereum differ in terms of developer metrics and notes how the non-fungible token (NFT) market is spurring demand for ETH.
“I remember saying very early on: follow the developers, follow the developers. Well, using that metric, Ethereum is off the charts, whereas Bitcoin is steady as she goes.
Clearly, Ethereum, decentralized finance, NFTs have hit a responsive chord. I think bringing the creator community into this ecosystem is helping it go a little bit viral more quickly than we would have expected.”
A new study by venture capital Outlier Ventures shows that Ethereum is the leading blockchain in terms of developer activities. The platform has had an average of 168 monthly active developers over the past 12 months. It is followed by Cardano (ADA) with 165 monthly active developers.