With a total of R$ 56.5 billion under management, Kinea, a traditional financial market company linked to Itaú, trusts in the potential of ethereum (ETH) as the basis of the entire validation system in the next generation of the Internet, the so-called Web 3.0.
The fund manager was one of the first to make room for the participation of digital currencies among the portfolio composed of stocks, fixed income, and other assets. According to a study prepared by analyst Rodrigo Zobaran, ETH brings together features that other cryptoassets have not yet achieved.
In an increasingly digital world, the economy of the third generation of the Internet, the so-called Web 3.0, is focused on the user and content producer experience:
“On web 3.0, the user can keep their content on a blockchain and choose to post it or not. In the future, the platform may even pay you for the post to be made”.
Zobaran confirmed that the fund manager has an investment in ethereum and a strategic position in bitcoin for times of market stress.
NFTs are essential on web 3.0
The metaverse is one of the main strands of web 3.0 projects, which relies on NFTs to ensure that its content is authentic and owned by the user. And ethereum was the first protocol in which NFTs, or non-fungible tokens, that function as a kind of digital certificate, was created.
“In a world increasingly focused on ESG, a paradigm shift from bitcoin’s proof-of-work (PoW) to ethereum’s proof-of-stake (PoS) is fundamental to adapt to this new scenario”, said Zobaran, explaining that PoW is a method used in cryptocurrency mining, but it consumes a lot of energy and has been criticized for not being sustainable.
“In addition, ethereum has undergone stress tests many more times than other projects, which puts it ahead of other digital currencies, such as Solana (SOL) and Polkadot (DOT)”, Zobaran pointed out.
According to him, ETH, being part of the second generation of cryptocurrencies, has a more engaged community. In addition, the very design of blockchains allows changes and troubleshooting to be done more dynamically.
On the other hand the Proof-of-stake, which does network maintenance, consumes less energy, which is seen with good eyes by the crypto market. This technology is also used in other currencies, such as Cardano (ADA) and Chanlink (LINK).