Manifold increase in value has led Ethereum- the next big altcoin after bitcoin to join the club of five top financial services in valuation terms. As per the CompaniesMarket Cap site, ethereum which commands a market cap of $403.84 billion closely half of bitcoin's $ 1 trillion Chase ($478.49 billion -valued is positioned right after Visa ($504.75 billion) and JP Morgan Chase in the list of the largest financial services companies globally. The list is topped by Bitcoin.
"Ethereum has been always been popular among developers specifically because it has provided a platform through which people can create Dapps (Decentralised Apps) and Smart Contracts that enable further blockchain innovation. These innovations have helped spur the growth and creation of tokens and NFTs, and have helped decentralise finance," a leading business daily quotes Darshan Bathija, CEO of Singapore-headquartered crypto trading platform Vauld as saying.
NFTs or non-fungible tokens do not share similarity with crypto and these cannot be traded for another identical token. In fact these are used for representing real-world objects including a painting or a house etc.
On May 6, finance secretary SC Garg said the centre should not be prohibiting the trade in cryptocurrencies and in fact should regulate them. Further he added that digital assets in the country need standard protocols.
Now the physical financial entity and the cryptocurrency though cannot be compared, the latter being a peer to peer software system and Visa and JP Morgan being for-profit business, in the asset list world over, Ethereum ranks 20th by market cap as per the data from CompaniesMarketCap..