Since the turn of the year, many high-profile names and financial institutions have backed altcoins to catch up and even surpass the king cryptocurrencies in some use cases.
Earlier this week, FTX.US president Brett Harrison threw his weight behind Ethereum and other PoS ecosystems, predicting that their market share will swell at the expense of Bitcoin’s. Harrison, however, isn’t the only one that shares this view.
Mark Cuban sides with ‘utility-loaded’ Ethereum and Polygon
Billionaire investor Mark Cuban has jumped on the bandwagon in support of Ethereum and the scaling solution Polygon. The American entrepreneur recently discussed his preference for the two networks over Bitcoin, citing utility reasons. Cuban, who owns the NBA team Dallas Mavericks, has consistently backed DOGE for its ease of use and utility but is not a fan of Bitcoin for the lack of that very utility.
In a recent interview with Crypto Banter, he explained that while Bitcoin is a good store of value, it isn’t up to scratch when it comes to utility. Alternative networks Ethereum and Polygon, to which he showed preference, are laden with several use cases thanks to their smart contract functionality. For this reason, Cuban says he has invested in “a lot of” MATIC and Ether.
The case for Ethereum and Polygon
Ethereum’s utility primarily comes from smart contracts. Via these self-executing protocols, the network can implement decisions or future agreements without an intermediary. This functionality has enabled the development of applications across the board, including lending/ yielding projects.
Polygon, on the other hand, was created to solve issues to do with scalability and congestion on Ethereum. The layer 2 scaling platform has established itself as an alternative for users looking for higher throughput and those avoiding high fees. Its growth has also been boosted by the exponential rise of the NFT industry last year. Polygon has further stood out as one of the chains benefitting from Ethereum’s receding market share.
The billionaire explained that Polygon has done reasonably well in alleviating gas fees concerns that hugely plague the base layer. He also anticipates the impact that Ethereum 2.0 could bring to resolve the astronomical fees often incurred on the chain.
Cuban insists Bitcoin is not a hedge against inflation
Cuban dismissed as ridiculous any thought that Bitcoin is a hedge against inflation. Using El Salvador’s sample case, he observed that Salvadorans still acquire Bitcoin using dollars just as any other person. Last month, Cuban aired similar sentiments, insisting that Bitcoin is “not and never will be” a hedge against inflation. He opined that such talk was only a marketing slogan for Bitcoin and safe-haven gold.
ETH and MATIC are still recovering from the plunge at the start of this week
Ethereum is currently swinging at $3,060 after two failed attempts (in which it formed a peak at $3,184) to overcome the $3,200 resistance yesterday. ETH/USD has consistently held above $3,050 after clearing the level on Wednesday. The pair is, however, down 2.70% in the last 24 hours.
Market analysts contend that the current price level is a crucial one as a bounce off it could see the token push for $3,300 – a level that proved out of reach during last week’s ascent. Intensified buying pressure could offer Ethereum the bullish momentum it needs to flip the $3,300. However, if bears dominate and pull the price below $3,050, Ether’s price will retreat further to $3,020 and could seek support around $2,960 if the dip persists.
To learn more about this token visit our Investing in Ethereum guide.
Since Wednesday, Polygon’s MATIC has been trapped between $1.75 and $1.90 as per CoinMarketCap data.
The token has lost 1.72% in the last 24 hours and is, as of press time, trading at $1.80. MATIC’s trading activity appears to suggest that the token will continue consolidating as the general crypto market struggles to recover from the pullback that followed last week’s run.
To learn more about this token visit our Investing in Polygon guide.