Our Network Creator: 10 Reasons Why Ethereum Could Break $10,000
This year has been a rollercoaster ride for Ethereum, with Ethereum starting 2021 at just over $720. However, at the time of writing this report, the price of Ethereum is only slightly below $4,100.
Due to its performance, many crypto advocates have come up with their own predictions for Ethereum’s current rally. A saying that has been very common on CryptoTwitter lately is that,"Ethereum is already on the way to $10,000."
Spencer Noon, the founder of Our Network, laid out the rationale for his Ethereum bull prediction in a recent report.
According to Noon, here are 10 reasons why Ethereum is poised to hit $10K.
First, of all cryptocurrencies, including Bitcoin,ETH earns the most revenue from network fees.
“Ethereum dwarfs every blockchain when it comes to payment fees, with current network fees approaching $7 billion, confirming the huge demand for Ethereum,” the analyst noted.
second,"Ethereum settles $30.5 billion a day, far more than Bitcoin and all other blockchains combinedthird,
third,There has been a corresponding surge in active wallets for Ethereum, its daily active addresses rose to 625 K (90-day MA), far exceeding its all-time high.
The fourth reason isDeFi's Heavy Reliance on the Ethereum Network, and Ethereum becomes more attractive to institutions.
Noon noted, “There is now $65 billion locked in DeFi, with 16 different projects having a combined value of over $1 billion, showing that Ethereum is a financial technology for institutional adoption.”
The fifth reason isStablecoin Supply Issues. Ethereum’s current stablecoin supply is over $50 billion, and the network has 500,000 unique senders per day. What's more, "Trading over $20 billion per day is the hallmark of an explosive product that fits the market."
sixth reasonRelated to the liquidity of DeFi, as DEX trading volumes have been surging across the board. Noon pointed out that the trading volume of DEX has exceeded 60 billion US dollars, an increase of nearly 60 times, which proves that the liquidity of DeFi has already competed with CeFi. It's worth noting here that PanteraCapital recently spotted something similar.
Arguably, Ethereum is becoming more attractive thanks to its emergence as an "economic vacuum for all assets, including Bitcoin." Nowhere is this more evident than in, “200K+ BTC now in various forms on Ethereum.”
There are other reasons that could lead to a surge to Ethereum $10,000. first,NFTS could be the hottest sector this year, their sales are as high as 600 million US dollars. The emergence and success of projects such as the Polygon network based on Ethereum has also refuted the claim that "Ethereum cannot scale narratives".
In the end, perhaps the most critical factor driving the value of Ethereum may beThe hype and progress surrounding EIP-1559.
The original text comes from ambcrypto, compiled and organized by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.
The original text comes from ambcrypto, compiled and organized by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.
