Former hedge fund manager and “crypto maximalist” Raoul Pal predicts $10,000 Ethereum by the end of the year. He also thinks that Ethreum could become bigger than Bitcoin in the next 9 months.
Raoul Pal is a former Goldman Sachs executive. He was also the co-founder of a global macro hedge fund in London. In an interview with InvestAnswers, Pal gave some bombshell predictions about the future of the crypto space.
Pal has the majority of his holdings in Ethereum – about 82% and claims that Ethereum has much more upside than Bitcoin. He also expects a major surge by the end of the year.
“I am using base case probabilities, no certainties. But I still think ETH finishes this year closer to $15,000 than to $10,000,” Pal said.
Ethereum is currently trading at about $4,700.
Ethereum is a blockchain token with smart contract functionality. It is also the second-largest crypto, trailing only behind Bitcoin. That is why some have called it the future of finance.
ETH Flipping Bitcoin?
Pal also spoke about the potential for Ether to become bigger than Bitcoin. Bitcoin is now the largest crypto, with some 41% of all value in cryptos tied to it.
On the other hand, Ether has 21% of the coin market cap, and this number is growing. EtH’s main advantage is its smart contact network, which allows users to create decentralized apps.
“I think that the flippening has a decent probability to happen in the next nine months,” Pal said.
One of ETH’s uses is the creation and sale of NFTs or “non-fungible tokens.” Their use, usually as digital collectibles, has exploded in the past year.
By the summer of 2022, he thinks ETH could hit as high as $40,000. However, still says that his “base case” is $20,000 by that time.
ETH Competitors Will Do Even Better
However, the Etereum network is far from perfect. Its high fees and huge energy demands keep away new users.
That is why Pal believes that smaller tokens, those that work as Etherum alternatives could do even better.
This includes high-performance smart contract cryptos like Solana and Terra. These tokens offer much faster processing and much lower fees. Solana, in particular, has seen a huge growth in its NFT ecosystem. Whichever platform wins out will depend on the solutions it provides, Pal says.
“I think Solana plays a role. Could it be larger than ETH over time? Potentially. Could there be a flipping? Possibly. It depends on what people need the network for” he said.
However, Pal is not ready to go all-in on these smaller tokens. They are, he says, still riskier than Ethereum.
“So why don’t I have all my money in those? Because I have less certainty because the network effects are less pronounced. So, therefore, I have to have a smaller bet” Pal explains.
Still, Ethereum is promising an Ethereum 2.0 upgrade, which could lower fees. It also has a very strong community.
“The network is not the technology, it’s the people that use it. That is the key point,” he said.
“I am not an ETH person. For me, ETH best horse to back with the best risk-adjusted return” he said.
Rather than support this or that crypto, he believes in the underlying technology powering it.
“I’m a crypto maximalist. I totally believe that this is the future of all digital value,” he said.