The cryptocurrency market might witness its first prolonged cycle, fueled by increased institutional investments and trading products within the Web3 sector, making digital asset investments more widely accessible.
Some investors foresee a crypto “supercycle” that could challenge the traditional four-year crypto market cycle linked to the Bitcoin (BTC) halving, potentially driving up digital asset valuations beyond this historical pattern.
For Ether (ETH), the second-largest cryptocurrency globally, this supercycle may be propelled by Wall Street’s expanding integration of blockchain technology, as noted by BitMine Immersion Technologies, the largest corporate holder of Ether.
The primary impetus for Ether could be “Wall Street embracing the blockchain,” according to BitMine, the major corporate holder of ETH.
Related: BlackRock earning $260M annually from Bitcoin, Ether ETFs
However, not all Wall Street investors share an optimistic view regarding Ether’s price movement.
The US investment bank Citigroup has projected a year-end price target of $4,300 for Ether, considerably lower than its all-time high of $4,953 achieved on August 24.
“Current prices are above activity estimates, possibly driven by recent buying activity and enthusiasm about use cases,” Citi wrote in a Monday note viewed by Reuters.
In the last six months, Ether has surged roughly 108%, trading at $4,177 at the time of writing, as per TradingView data.
Related: Machi Big Brother exits $25M HYPE bet at $4M loss as rivals capture Hyperliquid market share
AI agents viewed as a catalyst
BitMine identifies the rise of agentic artificial intelligence protocols as a second potential catalyst for a forthcoming Ethereum supercycle.
AI agents will need a “neutral platform,” such as a public blockchain, which could usher in more applications to Ethereum, the leading smart contract platform.
“For AI to genuinely add value, it must act as an economic entity. AI agents need the capability to acquire assets and manage finances,” said Ben Horowitz, co-founder and general partner at venture capital firm Andreessen Horowitz (a16z).
“If you’re an AI, you can’t possess a credit card,” Horowitz stated in a Tuesday X post. “Crypto serves as the economic network for AI,” he emphasized.
“Credit cards are incompatible with AI as money; therefore, the logical alternative is crypto, the internet-native currency.”
AI agents are automated programs designed to manage and perform specific tasks on behalf of users.
Autonomous on-chain agents can interact with blockchain protocols, allowing for functions such as trading, token swaps, portfolio management, and engaging with decentralized finance platforms.
Several prominent fintech firms are investing in AI agents. On September 2, PayPal Ventures led a Series A funding round for decentralized AI infrastructure provider Kite AI, raising $18 million, bringing its total funding to $33 million, as reported by Cointelegraph.
Magazine: Meet the Ethereum and Polkadot co-founder who wasn’t featured in Time Magazine
