Fidelity: The differentiating factor of Ethereum lies in unlocking new programmability, but its future remains uncertain

ChainCatcher news, according to Blockworks, Fidelity's digital assets subsidiary has released an Ethereum investment report stating that investors can view Ethereum as an "aspirational" form of currency, but "to become a widely accepted form of currency, it may face much more resistance than Bitcoin."

The report states that the uncertainty surrounding Ethereum's future upgrades and the number of circulating tokens presents a series of obstacles before Ethereum's supply can "reliably align with the supply of other value storage assets." The report notes: "No other digital asset seems likely to be better than Bitcoin, as Bitcoin is viewed by some as the safest, most decentralized, and most sound digital currency to date, and any 'improvement' requires trade-offs." However, the report believes that Ethereum's use of smart contracts unlocks a new level of programmability, which is Ethereum's "true differentiating factor." Additionally, Ethereum can generate yields through staking.

Fidelity's ultimate conclusion is that the increase in activity on Ethereum is indeed driving demand for block space, thereby benefiting token holders; meanwhile, there remain "complex, nuanced" factors, including protocol and scalability upgrades, which create uncertainty for investors regarding Ethereum's future.