On Thursday (March 18th), popular New Zealand crypto analyst and influencer Lark Davis (@TheCryptoLark on Twitter) talked about the reasons for his upload to Ethereum (ETH).
Davis started by talking about the Ethereum supply:
“First, let’s start by talking about the Ethereum supply right now. This week, we had the second largest Ethereum output from centralized exchanges, with 235,000 Ethereum withdrawn in a single hour. When the price dropped, buyers stepped up. This is only the second largest this year, of course, but it still shows that there is now a lot of interest in Ethereum … This is compelling, because it shows that the demand is still burning for Ethereum. In fact, the stock market balances for Ethereum have just reached a new low. Ethereum is in build mode; whales still buy a lot.“
He went on to explain that the reason for such a high demand for Ethereum for investors is that many of them expect the price of Ethereum to reach $ 10,000 and possibly “much higher than that”.
Here are the main reasons for Davis’ optimism about Ethereum:
NFT Mania
“It seems that everyone, of course, is talking about NFTs nowadays, and this is really important, because a completely new audience of people is exposed to an interesting use case for cryptocurrencies and, of course, for Ethereum …
“Every major NFT market is an Ethereum market … other chains will make NFTs … but, as often happens, all the liquidity and all the most valuable stuff is on Ethereum.“
Huge potential of DeFi
“We only have 1.6 million unique addresses that used DeFi protocols. This means that only about 3.5% of all Ethereum active wallets have used DeFi. The biggest thing that happens in cryptocurrencies is that only a small portion of users have actually used it. It’s crazy. This tells me one thing: we are so early for DeFi and there is still so much room to grow … other chains make DeFi … but again the biggest and best protocols with the deepest liquidity are build on Ethereum.“
Scaling 100X Coming soon
“Ethereum is working hard on scaling right now. In fact, a major update is underway that will likely be shipped to the main Ethereum network in the next few weeks, at most a few months, which will completely change the way we do Etheruem taxes to reduce taxes en masse. It’s called Optimism, a layer 2 scaling solution that will essentially enable 100X scalability for Ethereum. This will scale both simple transactions and most importantly smart contracts.“
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The opinions and opinions expressed by the author are for information purposes only and do not constitute financial, investment or other advice.