The cryptocurrency market may undergo its first prolonged cycle due to the increasing institutional investments and trading products in the Web3 sector, making digital asset investments more accessible.
Some investors anticipate a crypto “supercycle” that could challenge the four-year crypto market cycle linked to the Bitcoin (BTC) halving, allowing digital asset valuations to exceed this historical period.
For Ether (ETH), the second-largest cryptocurrency, this supercycle might be spurred by Wall Street’s increasing embrace of blockchain technology, as noted by BitMine Immersion Technologies, the biggest corporate holder of Ether.
The primary catalyst for Ether could be “Wall Street embracing blockchain,” according to BitMine, the largest institutional ETH holder.
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Despite the excitement surrounding a potential supercycle, not all Wall Street players are optimistic about Ether’s price outlook.
US investment bank Citigroup has set a year-end price target of $4,300 for Ether, notably below ETH’s all-time high of $4,953 reached on Aug. 24.
“Current prices surpass activity estimates, likely influenced by recent buying pressure and enthusiasm over use cases,” Citi noted in a Monday report referenced by Reuters.
Ether has appreciated by about 108% in the last six months and was trading at $4,177 at the time of writing, as per TradingView data.
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AI agents seen as a driving force
BitMine identifies the rising adoption of agentic artificial intelligence protocols as another significant catalyst for the anticipated Ethereum supercycle.
AI agents will necessitate a “neutral platform” like a public blockchain, which could enhance the application landscape on Ethereum, the leading smart contract platform.
“For AI to be truly valuable, it must function as an economic entity. Hence, AI agents need to have the capability to make purchases and receive payments,” stated Ben Horowitz, co-founder and general partner at venture capital firm Andreessen Horowitz (a16z).
“If you’re an AI, you can’t own a credit card,” Horowitz said in a Tuesday X post. “Crypto serves as the economic medium for AI,” he added.
“Credit cards don’t serve as money for AI, so logically, internet-native currency is crypto.”
AI agents are software applications created to automate and perform specific tasks for users.
Autonomous on-chain agents can engage with blockchain protocols, facilitating activities such as trading, token swaps, portfolio management, and participating in decentralized finance platforms.
Many leading fintech companies are investing in AI agents. On Sept. 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.
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