On Thursday (March 18), popular New Zealand-based crypto analyst and influencer Lark Davis (@TheCryptoLark on Twitter) talked about the reasons for his bullishness on Ethereum (ETH).
Davis started by talking about the supply of Ethereum:
“First, let’s start off by talking about the supply of Ethereum right now. This week, we had the second biggest Ethereum outflow from centralized exchanges with 235,000 Ethereum withdrawn in a single hour. When the price went down, buyers stepped up big time. That’s just the second biggest of this year, of course, but still it shows that right now interest is very high in Ethereum… This is bullish as it shows that the demand still red-hot for Ethereum. In fact, on-exchange balances for Ethereum just reached a new low. Ethereum is in accumulation mode; whales are still buying heavily.“
He then went on to explain that the reason for so much demand for Ethereum for investors is that a lot of them expect the Ethereum price to go to $10,000 and possibly “much higher than that.”
Here are the main reasons for Davis’ bullishness on Ethereum:
NFT Mania
“Seems everyone, of course, is talking about NFTs these days, and this is really important because an entire new audience of people are being exposed to an exciting use case for cryptocurrency and, of course, to 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.“
Huge Potential of DeFi
“We still only have 1.6 million unique addresses which have used DeFi protocols. That means that only around 3.5% of all active Ethereum wallets have used DeFi. The biggest thing happening in cryptocurrencies is still only a tiny fraction of users have actually used it. That’s insane. This says one thing to me: we’re so early for DeFi and there’s still so much room to grow… other chains are doing DeFi… but again the biggest and the best protocols with the deepest liquidity are building on Ethereum.“
100X Scaling Coming Soon
“Ethereum is working very hard on scaling right now. In fact, a major upgrade is underway that will likely be shipped to the Ethereum mainnet within the next few weeks, a couple of months at the latest that’s going to totally change the way we do fees Etheruem to bring fees down massively. It is called Optimism, a layer 2 scaling solution that will essentially allow for 100X scalability for Ethereum. This is going to scale both simple transactions and most importantly smart contracts.“
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The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.