The cryptocurrency landscape might witness its first prolonged cycle, spurred by increasing institutional investment and trading products in the Web3 space, thereby enhancing access to digital asset investments.
Some investors are forecasting a crypto “supercycle” that could challenge the traditional four-year crypto market cycle linked to Bitcoin (BTC) halving events, leading digital asset valuations to rise beyond historic time frames.
For Ether (ETH), the second-largest cryptocurrency, this supercycle could be ignited by Wall Street’s expanding embrace of blockchain technology, as noted by BitMine Immersion Technologies, the largest corporate holder of Ether.
BitMine suggests that the primary force behind Ether’s potential surge is “Wall Street running into the blockchain,” according to them.
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Despite the enthusiasm for a possible supercycle, not all Wall Street figures share an optimistic outlook on Ether’s price movement.
US investment bank Citigroup has projected a year-end price target for Ether at $4,300, falling short of ETH’s all-time high of $4,953, reached on August 24.
“Current prices are above activity estimates, likely influenced by recent buying pressure and enthusiasm over use-cases,” Citi noted in a Monday report seen by Reuters.
Ether has increased approximately 108% in the past six months, trading at $4,177 at the time of writing, as per TradingView data.
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AI agents seen as a catalyst
BitMine identifies the rising adoption of agentic artificial intelligence protocols as a second possible trigger for the oncoming Ethereum supercycle.
AI agents will necessitate a “neutral platform” like a public blockchain, potentially bringing more applications to Ethereum, the leading smart contract platform.
“For AI to offer real value, it must act economically. Thus, AI agents need the ability to purchase items and generate income,” remarked Ben Horowitz, co-founder and general partner at the venture capital firm Andreessen Horowitz (a16z).
“If you’re an AI, you cannot have a credit card,” Horowitz stated in a Tuesday X post. “Crypto serves as the economic network for AI,” he added.
“Credit cards aren’t a viable form of money for AI, making crypto the logical choice for internet-native transactions.”
AI agents are software applications crafted to automate and perform specific tasks on behalf of users.
Autonomous on-chain agents can engage with blockchain protocols, facilitating functions such as trading, token swaps, portfolio management, and interaction with decentralized finance platforms.
Several major fintech companies 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 total funding to $33 million, as reported by Cointelegraph.
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