In a recent video, prominent crypto analyst Lark Davis is unveiling 5 compelling reasons for his bullish optimism that Ethereum will reach $19,000 soon after Ethereum ETF.
Ethereum New Highs
Ethereum’s (ETH) price recently hit a new all-time high of $4,313 with a market cap of half a trillion dollars as the cryptocurrency extends a rally that has seen its price gain over 350% this year.
“The rally for Ethereum has been mind-blowing beyond belief”.
The Ethereum network is also pulling numbers with daily ETH transactions hitting a new all-time high of 1.36 million. This breaks the 2017 daily transaction record of 1.33 million on the network. In addition, the number of active addresses has reached a new ATH.
“There is a growing demand on the ETH network”, he says.
Ethereum Network
According to the trader, as more users troop onto the network, the more demand for the network, the higher the ETH price goes as users would need to have a unit of the asset to use the network.
Yet, Davis notably shows his concern that the network has a big downside that needs to be upgraded. The average fee for sending an ERC-20 token is $27, and the price for swapping on Uniswap is $250 which is extremely high.
“Though I’m bullish on ETH, I’m very honest about the fee situation. We can partially blame the new wave of Ponzi coins, but we can’t necessarily blame them as they are the temporal course, but realistically, the Ethereum network needs an upgrade”.
Ethereum Hype
The crypto KOL pointed out that Ethereum is backed by the rising attention of investors probably because of its price.
“Right now, people are going crazy for Ethereum!”
Additionally, as Davis says, its attention also stems from the value it provides. Ethereum has the best-decentralized applications, and so people are highly interested and believe in its future.
Buyers Step Up
Ethereum has currently overtaken Bitcoin in spot volume. The difference between Ethereum and Bitcoin in spot volume went negative this week for the first time.
As Davis says, though Bitcoin is popular, ETH is the real deal.
“There are a lot of people buying Ethereum. And it is not just driven by retail investors, we are seeing lots of institutional buyers are coming into the ecosystem, staking reward, risk-reward, and deflationary mechanism…Investors want a safer place to store their assets, and that is Ethereum”.
The EIP-1559 and many other projects in the pipeline can further make Ethereum better.
Triple halving
“ETH will have lower issuance than BTC in 12 months and no one’s talking about it”.
The triple halving set to take place in a few months will be a catalyst to send the price to the moon.
Ethereum will have its average annual issuance rate lower than Bitcoin in an event that will reduce the 4.5 percent issuance to about 0.5 percent in a 90 percent reduction. This will be equivalent to three Bitcoin havings.
Ethereum ETF
“When the gold ETF was introduced, the price of gold rallied by 473% within 8 years from a 2 trillion market cap to a 10 trillion”.
As Davis analyses, a Bitcoin ETF based on this percentage gain would imply a $260,000 price, and Ethereum is $19,970″.
Disclaimer: Opinions expressed at AZCoin News are not investment advice. Investors should do their due diligence before making any high-risk investments in cryptocurrencies. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. AZCoin News does not recommend the buying or selling of any cryptocurrencies.
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