In the latest video, trader and analyst Lark Davis shares his optimism that Ethereum (ETH) will be a five-digit asset and the timeframe this celebration will happen.
To start off, the crypto KOL talks about the current supply of Ethereum and highlight that there is a massive interest in Ethereum.
“This week, we had the second-biggest Ethereum outflow from centralized exchanges with 230,000 Ethereum withdrawn in a single hour when the price went down. Buyers stepped up big time. It shows that right now interest is very high to get Ethereum because that’s like 400 million dollars worth of ETH that was bought up by buyers. That’s insanely big!”, says Davis.
On the exchange, despite ETH’s bullish cycle, the demand for this coin is still red hot. In fact, balances for Ethereum reached a new low.
“Ethereum is in accumulation mode, whales are still buying heavily now”.
Lark Davis continues to explain this bullish view on ETH by mentioning NFTs.
NFT are tokens that we can use to represent ownership of unique items. They let us tokenize things like art, collectibles, even real estate. They can only have one official owner at a time and they’re secured by the ETH blockchain – no one can modify the record of ownership or copy/paste a new NFT into existence.
“NFTs are not getting a lot of buzz right now because the media is going crazy about it!”.
And, as the matter of fact, the important thing is that “the undisputed home of NFT is Ethereum. Every major NFT market is an Ethereum market”.
The third reason to support his expectation is total DeFi users, in which there are still only 1.6 million unique addresses that have used DeFi protocols. Specifically, only around 3.5% of all active Ethereum wallets have used DeFi.
“This is the biggest thing happening in cryptocurrencies and still only a tiny fraction of users have actually used it. That’s insane!”.
Lastly, the crypto KOL talks about Ethreum’s scalability.
“ETH 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 or a couple of months at the latest. That’s going to totally change the way we do fees on a theory. It’s going to bring fees down massively. A layer-2 scaling solution 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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