- Etherealize aims to attract institutional investors, with backing from Vitalik Buterin.
- Despite internal struggles, ETH sees $2.725B in Ether ETF inflows, signaling strong demand.
- To hit $4,000, Ethereum needs to surpass $3,300, with whale activity driving price growth.
A new Ethereum-focused startup known as Etherealize was formally unveiled on January 22. Founded by Vivek Raman, the company is looking to onboard institutional investors to the Ethereum ecosystem. This is backed by Ethereum co-founder Vitalik Buterin and the Ethereum Foundation, which suggests a lot of buying in on the project’s vision.
Institutional Push for Ethereum
The startup position itself as the “institutional marketing and product arm of Ethereum.” The community widely expects that Etherealize may be exactly what Ethereum has been lacking and what will help it stand up to competitors such as Bitcoin. Raman was positive about the future of Ethereum and said, “Ethereum is the only blockchain which has survived the test of time.”
The launch arrives at a time when the Ethereum Foundation has been receiving a lot of flak for its management. Several people within the Ethereum community have expressed concern about the Foundation’s handling of its large Ether reserves. The Foundation has been accused of not providing enough support to the network’s developers, a situation that has frustrated the core believers of Ethereum.
Related: https://cryptotale.org/ethereum-foundation-allocates-50k-eth-to-boost-defi-apps/
This is despite the fact that Ethereum has been unable to match the performance of some of its competitors such as Solana and XRP. Over the past year, Ethereum’s price was up by 37.1%, Solana went up by 192%, and XRP made an astonishing 494% gain. These figures demonstrate that competition for the market is intensifying among the smart contract platforms.
Despite the backlash, Vitalik Buterin has gone on record to support the Ethereum Foundation. He agreed that criticism was important and commented over the assault on the leadership, especially on Aya Miyaguchi. However, the current and ongoing rivalry and conflict within the community present future difficulties for Ethereum’s development.
Further, a key Ethereum developer, Conner, recently stepped down, increasing the chaos. He said the main factor was a lack of compatibility with the foundation’s leadership. This resignation only adds to the discontent with the Ethereum Foundation and its management, which has been a cause of internal conflict.
Ethereum Attracts Institutional Interest
However, Ethereum has its internal problems and is still the object of interest from institutions. In the same period, Ether ETFs have attracted $2.725 billion of net inflows, which means that the interest in Ethereum is still strong. Experts speculate that if Etherealize’s endeavors prove fruitful, the adoption of Ethereum may likely rise among institutions in the next five years.
However, Ethereum’s price needs to reach $3,300 to keep the upward trend going. A high concentration of Ethereum whales may increase its price to $4,000 in the near future. As of press time, ETH has traded at $3,194, a 2.89% drop from the previous day.
