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    Ethereum compared to Amazon’s early days by 21Shares analysts, highlighting untapped potential and burgeoning developer interest

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    HI, Ethereum’s Merge will affect more than just its blockchain, Ethereum

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    Ethereum is likened to the early days of Amazon by research analysts at 21Shares, with its potential yet to be fully realised by Wall Street investors. Despite initial low interest in Ethereum exchange-traded funds (ETH ETFs), and its small market cap compared to Amazon, Ethereum boasts over 200,000 active developers. Companies including BlackRock and Union Bank of Switzerland have invested heavily in Ethereum, but many investors remain oblivious to its capabilities. Despite recent revenue drops, 21Shares predicts the future success of Ethereum, citing Amazon’s initial losses before achieving global dominance.

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    Folks who play the stock game Wall Street-style haven’t quite gotten the full picture of Ethereum just yet. It’s a lot like Amazon was back in the early ’90s when it was just a bookstore on this new thing called the internet. This insight comes from a research analyst at 21Shares, which manages crypto assets.

    Ethereum exchange-traded funds (ETH ETFs) started up in July, but didn’t see a ton of action compared to Bitcoin ETFs. The bigger attention to ETH ETFs will likely only happen when Ethereum’s full potential is recognized.

    Ethereum started off as a basic platform for smart contracts. You can think of it as kind of like when Amazon was just selling books online. But now it handles over $140 billion dollars in decentralized finance apps, so it’s pretty much the Amazon Marketplace of smart contracts.

    Even though Ethereum’s market cap is a tiny fraction of Amazon’s $2 trillion value, according to Federico Brokate from 21Shares, Ethereum has one big advantage. It’s got a ton of smart people working on it – over 200,000 active developers who are evolving it constantly, which Amazon didn’t have in the 90s.

    While there’s competition for Ethereum from platforms like Solana, it’s still the top-dog in the world of decentralized exchanges, including stablecoin and real-world asset markets.

    Big firms like BlackRock and Union Bank of Switzerland have both put a lot of money into Ethereum, in the form of tokenized funds. Even PayPal and Visa are building on Ethereum. However, according to Brokate, most investors still don’t understand what Ethereum can do.The benefits and potential of Ethereum are clear to see for those who understand it, but many are choosing to stay on the side-lines for now.

    While there has been less investment into spot Ether ETFs than expected, Katalin Tischhauser, who is the Head of Research at Sygnum Bank, suggests we could see a different picture in 12 months. The potential of Ethereum is just too big to ignore.

    As for 21Shares, they’ve got one of the eight US spot Ether ETFs and managed to pull into $21.9 million in net inflows. Despite Ethereum’s revenue taking a dip recently, which wouldn’t sit well with some Wall Street investors, Brokate reckons just like Amazon back in the day, you’ve to take a hit before you make a hit. After all, in the ’90s Amazon was seeing losses every quarter, but look where they are now.

    So, while Ethereum’s progress might not be what everyone expected, there’s still a whole world of possibilities and the ‘experts’ reckon the best is yet to come.

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