# 21Shares: Ethereum Holds Amazon-Like Potential
Cryptocurrency asset management firm 21Shares recently stated that Ethereum (ETH) harbors potential comparable to early-stage Amazon.
According to Cointelegraph, a 21Shares research analyst remarked, “Just as Amazon started as an online bookstore in the 1990s and went on to disrupt global e-commerce and cloud computing markets, Ethereum also has the potential to foster innovative applications beyond current imagination.”
Presently, Wall Street investors have yet to fully grasp Ethereum’s potential, drawing parallels to Amazon’s nascent stages when it garnered attention from only a select few. 21Shares pointed out this underappreciation as a factor behind the modest inflows into Ethereum-based Exchange-Traded Funds (ETFs).
Launched as a smart contract platform in 2015, Ethereum now supports a $140 billion decentralized finance (DeFi) ecosystem. 21Shares research analyst Lina ElDib stated, “The complex structure of Ethereum contributes to a lower level of understanding. ETF inflows will increase once investors gain a deeper comprehension of Ethereum’s potential.”
# Ethereum: Talent and Scalability Beyond Amazon
Federico Brocato, Head of U.S. Business at 21Shares, emphasized Ethereum’s extensive talent pool, stating, “While Amazon had about 7,600 employees in the 1990s, the Ethereum ecosystem now boasts over 200,000 developers, researchers, and protocol designers actively contributing.” He suggested that Ethereum might parallel or surpass Amazon’s global employment growth.
Despite challenges from Layer-1 competitors such as Solana, Ethereum maintains a dominant position in decentralized exchanges, lending, stablecoins, and real asset markets. Furthermore, notable corporations like BlackRock, UBS, PayPal, and Visa are increasingly using the Ethereum network for asset tokenization.
# Investor Caution, Yet Optimism for Growth
ElDib explained that many investors still do not fully understand Ethereum’s value, resulting in cautious approaches until clear growth trajectories become evident. However, she projected that “as the market matures and Ethereum’s diverse applications expand, investor sentiment and demand will follow a stable growth path.”
Catalin Tischehauser, Head of Research at Signum Bank, noted that the lower inflow into Ethereum ETFs compared to Bitcoin ETFs is partly due to initial marketing deficiencies and regulatory constraints from U.S. securities authorities. “Traditional investors need more time to consider their options,” Tischehauser stated, expressing minimal concern over the current low inflows.
In conclusion, 21Shares underscores that while Ethereum’s growth may take time, the cryptocurrency possesses growth potential similar to that of Amazon. With gradual understanding and acceptance, long-term performance is expected to follow.
