For years, the debate over “blockchain, not Bitcoin” dominated discussions in the financial sector, with institutions favoring private blockchain applications over public cryptocurrencies. However, 2016 saw a surge in Ethereum’s popularity, indicating that the future of digital currencies is far from decided. With Ethereum’s market capitalization surpassing $1 billion and Bitcoin maintaining its dominance at $7 billion, digital currencies are rapidly evolving into a new asset class.
Coinbase Validates Ether as a Major Cryptocurrency
San Francisco-based cryptocurrency exchange Coinbase has officially announced that it will support Ether (ETH) trading on its institutional-grade platform. Rebranding its exchange to Global Digital Asset Exchange (GDAX), Coinbase aims to offer a wider range of digital assets, reinforcing the legitimacy of cryptocurrencies beyond Bitcoin.
According to Chris Burniske, blockchain products lead at ARK Investment Management, this move validates Ethereum as the second-largest cryptocurrency and further defines digital currencies as an investable asset class. Smaller exchanges such as Kraken, Bitfinex, and Gemini had already listed ETH trading pairs, but Coinbase’s decision cements its institutional acceptance.
Ethereum’s Rapid Growth and Developer Excitement
Ethereum’s rise has been nothing short of phenomenal. At the beginning of 2016, Ether was valued at just $0.95 per coin, but by mid-May, it had surged to nearly $15. Unlike Bitcoin, which functions as digital gold, Ethereum enables decentralized applications (dApps) and smart contracts, driving its widespread adoption.