Analyst Lark Davis Unveils Why Ethereum (ETH) Will Be Worth Trillions
Prominent analyst Lark Davis discusses the endless use cases of Ethereum as well as the real price potential of Ethereum as more developers, more users, and more economic activities come to the blockchain.
“The use cases for this asset are only just beginning, and the future is going to be insane!”
The trader starts off the video by talking about Ethereum back in 2017. According to Davis, in 2017, the big use case for Ethereum was fundraising. ICO Mania was rather short-lived, but established a major use case for ETH.
“Many said it was a 1 trick pony, but ETH quickly proved the haters wrong,”
“The rise of Defi, with an explosion of new apps in 2020. NFTs were born years ago but remained niche until early 2021 when they exploded. Stablecoins have grown immensely in importance, 10X growth in a year. Gaming has been exploding recently, it will be much bigger!”
With all of this economic activity, Ethereum is now the blockchain that settles the most value on-chain every day, currently at 22 billion. Yet, the trader highlights that Vitalik Buterin is growing ETH beyond the confines of DeFi.
Next on the video, Davis lists out numerous use cases of Ethereum (ETH). First on the list is bonds, a 119 trillion dollar market. According to the trader, European Investment Bank (EIB) issued $121M digital notes using Ethereum:
“The EIB said the transaction is a series of bond tokens on a blockchain, where investors purchase and pay for the security tokens using traditional fiat. The notes have a zero percent coupon and will be registered on the blockchain.”
Central Bank Digital Currencies are another area that could be huge. Most countries are launching their own crypto coins and some, such as Israel, are using Ethereum and nonfungible tokens for a pilot as part of its ongoing digital shekel research.
Stock is another area that Ethereum has touched on. The trader comments: “We have had the first innovators issuing equity on Ethereum already. It’s still early days for this 100 trillion dollar industry. I doubt regulators will be excited to see this happen in any meaningful way anytime soon.”
Insurance, Real estate, Social tokens, and Crypto Daos are next on the list. Especially for social tokens, the trader highlights that Raoul Pal has been talking a lot about this one. This is allowing brands, communities, and creators to issue tokens for example for exclusive content, merch, and discounts.