Ethereum News Update
Hyperledger, one of the competitors to the Ethereum Enterprise Alliance (EEA), recently lost two of its biggest clients: The CME Group and Deutsche Boerse.
What’s the big deal?
Well, both were major exchanges. Both contributed $250,000 apiece to Hyperledger. And both downgraded their status from Premium to General members.
In other words, this is a serious blow to the consortium that Hyperledger was trying to build.
It was an attempt to find more use-cases for blockchain technology, then fund the creation of those use-cases faster than the EEA. However, that plan seems to be falling apart, which is bad for Hyperledger and good for the EEA.
For those who may be unfamiliar with the EEA, it is Ethereum’s very own cartel of big business. A Fortune 500 working on its behalf.
Daily Ethereum Chart:
What Does This Mean for ETH Prices?
With Hyperledger weakened, the EEA has an opportunity to carve out a major section of the market. If we are correct in this prediction, more institutions will coalesce around the EEA in the coming months.
This could, in turn, provide a massive tailwind for ETH prices.
There are a good many analysts who would disagree with that assessment. They believe Ethereum needs to win the trust of the public. Not corporations. I think they have their heads in the clouds.
Does anyone really believe that ordinary citizens will start buying their groceries in Bitcoin or Ethereum? If so, how long will that transition take? Five years? 10?
The truth is, no one knows. All we know is that social change of that magnitude comes in dribs and drabs. Not in floods. Businesses, however, adapt much quicker than people. They have to in order to survive.
As such, we expect greater adoption to come from the enterprise side of the equation.
This development with Hyperledger only strengthens our bull case. We continue to believe that ETH will accelerate toward our Ethereum price forecast of $1,500 in 2018.
Also Read: Hold on to Ethereum for the Long Term