The cryptocurrency market might witness its first prolonged cycle fueled by the increasing institutional investment and trading products in the Web3 sector, enhancing access to digital asset investments.
Some investors foresee a crypto “supercycle” that could challenge the four-year crypto market cycle theory linked to Bitcoin (BTC) halving, suggesting that digital asset valuations may surpass this historic timeframe.
For Ether (ETH), the world’s second-largest cryptocurrency, this supercycle may be driven by Wall Street’s expanding embrace of blockchain technology, as per BitMine Immersion Technologies, the largest corporate holder of Ether.
BitMine claims that one major factor for Ether’s rise could be “Wall Street engaging with the blockchain,” according to them.
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Despite the enthusiasm surrounding a potential supercycle, not all participants on Wall Street are optimistic about Ether’s price trajectory.
Citi, a US investment bank, has set a price target of $4,300 for Ether by year-end, falling considerably short of ETH’s all-time high of $4,953 achieved on August 24.
Citi noted in a Monday report viewed by Reuters that “current prices are elevated compared to activity estimates, possibly influenced by recent buying pressure and excitement over various use-cases.”
Over the past six months, Ether has surged approximately 108%, trading at $4,177 at the time of writing, according to TradingView data.
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AI agents viewed as a potential catalyst
According to BitMine, the increasing adoption of agentic artificial intelligence protocols could serve as the second catalyst for an upcoming Ethereum supercycle.
AI agents will necessitate a “neutral platform” like a public blockchain, potentially bringing more applications to Ethereum, the dominant smart contract platform.
Ben Horowitz, co-founder and general partner at venture capital firm Andreessen Horowitz (a16z), stated, “For AI to prove valuable, it must act economically. Thus, AI agents need the capability to make purchases and generate revenue.”
“If you’re an AI, credit cards aren’t an option,” Horowitz remarked in a Tuesday post on X, Crypto is effectively the economic ecosystem for AI,” he stated.
“Credit cards are ineffective as money for AI; thus, crypto becomes the logical choice as internet-native currency.”
AI agents are software designed to automate and carry out specific tasks on behalf of users.
Autonomous on-chain agents can interact with blockchain protocols, facilitating functions like trading, token swaps, portfolio management, and participation in decentralized finance platforms.
Several leading fintech companies are investing in AI agents. On September 2, PayPal Ventures spearheaded a Series A funding round for decentralized AI infrastructure provider Kite AI, raising $18 million, bringing its total funding to $33 million, according to Cointelegraph.
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