Ethereum is now the collateral of the internet following its widespread adoption in NFT and metaverse sectors.
Mike McGlone, a senior commodities analyst at Bloomberg, called Ethereum (ETH) the collateral of the internet following the cryptocurrency’s widespread adoption across various blockchain protocols like non-fungible tokens (NFTs) and the metaverse.
The Bloomberg strategist, who has made positive predictions for the cryptocurrency market in recent times, noted that Ethereum prices will continue to surge given the widespread adoption of the coin across these blockchain protocols.
His most recent prediction for Ethereum comes as demand for the second-largest cryptocurrency skyrockets while its total supply has decreased, following multiple initiatives being carried out on the network, including the ETH 2.0 staking.
“Demand is increasing, supply is declining and Ethereum‘s position at the epicenter of the digitization of finance and money suggests further price appreciation. Ethereum — the denominator for NFTs and top platform for tokenization — is becoming the collateral of the internet,” McGlone tweeted recently.
Demand is increasing, supply is declining and #Ethereum's position at the epicenter of the digitization of finance and money suggests further price appreciation. Ethereum — the denominator for NFTs and top platform for tokenization — is becoming the collateral of the internet pic.twitter.com/hS7aLeqZ7N
— Mike McGlone (@mikemcglone11) March 30, 2022
Ethereum is currently one of the most adopted cryptocurrencies in the world, with its use case expanding beyond expectations on a daily basis.
ETH is mostly used as a payment token that grants investors access to the world of non-fungible tokens and metaverse.
Several NFT and metaverse projects have accepted the coin as the payment method for their digital collectibles, including Bored Ape Yacht Club (BAYC) non-fungible token.
Shiba Inu is also planning to use Ethereum as a payment token for its 100,595 plots of land that will be offered in SHIB: The Metaverse.
Similarly, the number of Ethereum in circulation has reduced significantly, as the community anticipates the launch of ETH 2.0.
Recall that a deposit contract was created in November 2020, with Ethereum holders required to stake at least 524,000 ETH before Ethereum 2.0 (Phase 0) will launch.
Since the initiative started, Ethereum holders have successfully staked over 11 million ETH in the contract, with 100,000 units of the coin added in just one week.