Grayscale: ETH may be the “safest, most reliable, and largest smart contract platform by market capitalization”

2 min readMar 1, 2024

ETH occupies the largest share among digital currencies in the investment portfolios of financial institutions. This is influenced by the upcoming Dencun update, Bybit experts are sure.

Analysts noted that the transition of funds from other cryptocurrencies and BTC to Ethereum began in December. The reduction affected L2-, AI- and BRC-20 tokens. They have been growing rapidly over the past year.

Predictably, BTC was in second place after ETH in companies’ portfolios, which somewhat contradicts the position of retail investors who prefer Bitcoin.

As experts note, the share of the two most popular crypto coins in institutional portfolios has increased from 50% to 80%. In addition, DeFi coins and stablecoins showed positive dynamics.

Grayscale noted that despite the increase in competition between blockchains, the Dencun update can affect the “maturing” of ETH against the backdrop of lower transaction fees and increased network scalability.

Dencun must overcome the challenges associated with low transaction speed and throughput. The developers intend to expand the modular structure of the blockchain and reduce gas fees.

“While it’s unclear how much this will reduce transaction costs for Layer 2 end-users when implemented, some estimate it will be by more than 20 times. If all goes as planned, this upgrade may help further narrow the gap between Layer 2 players such as Optimism and Arbitrum and Solana [in terms of commissions], “ the experts emphasized.

Grayscale notes that the second-largest cryptocurrency by capitalization may turn out to be “the safest, most reliable, and also the largest smart contract platform by market capitalization.”

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