ARK Invest's founder and CEO Cathie Wood believes the second-largest cryptocurrency by market cap Ethereum (CRYPTO: ETH) is significantly undervalued.
What Happened: In a recent interview with CNBC’s Squawk Box, Wood said that Ethereum’s position as a “venue for DeFi and NFTs” makes it even more undervalued than the market-leading cryptocurrency Bitcoin (CRYPTO: BTC).
“The fact that it [Ethereum] is the venue, or the protocol, for DeFi and for NFTs suggests to us that it is even more undervalued than Bitcoin is, just because there are new worlds growing up on top of it,” stated Wood.
The ARK CEO said that Ethereum is still in its infancy and believes the digital asset has a long way to go – particularly in terms of large institutional adoption. In her view, institutions will begin moving into DeFi and NFTs, which will further accelerate Ethereum’s growth.
Compared to Ethereum, Wood said that Bitcoin is relatively more established in the monetary system but is also considerably undervalued.
Reiterating her $500,000 price prediction for the leading digital asset, Wood explained that Bitcoin has now become “impossible to ignore.”
“Institutional managers have to look at new asset classes that are evolving and that have low correlation. That’s the Holy Grail in terms of asset allocation,” she said.
Price Action: As of Tuesday morning, Bitcoin was trading at $47,400, down 3.12% in the last 24 hours. Meanwhile, Ethereum fell under the $4,000 mark, losing 13% of its value over the last seven days. On Tuesday, Ethereum was trading at $3,800, down 5% over the last day.
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