On Thursday (March 18), popular New Zealand crypto analyst and influencer Lark Davis (@BuienRadarNL on Twitter) shared the reasons for his optimism about Ethereum (ETH).
Davis started talking about Ethereum’s delivery:
First, let’s start talking about Ethereum’s delivery right now. This week, we had the second largest Ethereum outflow from centralized exchanges with 235,000 Ethereum withdrawn in one hour. When the price fell, buyers skyrocketed. Of course that’s just the second largest this year, but it still shows interest is very high in Ethereum right now … This is bullish as it shows demand for Ethereum is still red-hot . In fact, the stock market balances for Ethereum just hit a new low. Ethereum is in accumulation mode; whales still buy heavily.
He then explained that the reason for so much demand for Ethereum from investors is that many of them expect the Ethereum price to go to $ 10,000 and possibly “much higher than that.”
These are the main reasons for Davis’s optimism about Ethereum:
NFT Mania
It seems like everyone is talking about NFTs these days, and this is really important because a whole new audience of people is being exposed to an exciting use case for cryptocurrency and, of course, Ethereum …
Every major NFT market is an Ethereum market … other chains are going to do NFTs … but as so often happens, all the liquidity and all the most valuable stuff is on Ethereum.
Enormous potential from DeFi
We still only have 1.6 million unique addresses that used DeFi protocols. That means that only about 3.5% of all active Ethereum wallets have used DeFi. The biggest thing that happens with cryptocurrencies is that only a small fraction of the users have actually used it. That’s insane. This tells me one thing: we are so early for DeFi and there is still so much room to grow … other chains are doing DeFi … but re-building the biggest and the best protocols with the greatest liquidity on Ethereum.
100x scaling will be available soon
Ethereum is currently working very hard on scaling up. In fact, a major upgrade is underway that will likely ship to the Ethereum mainnet in the next few weeks, at the latest, a few months, which will completely change the way we pay Etheruem fees to bring down fees massively. It’s called Optimism, a layer 2 scaling solution that essentially allows 100X scalability for Ethereum. This is going to scale up both simple transactions and especially smart contracts.
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The views and opinions of the author are for informational purposes only and do not constitute financial, investment or other advice.