Top Crypto Strategist Shows 7 Reasons For His Bullish On Ethereum (ETH)
In the recent video, top crypto strategist Lark Davis shares with his subscribers 7 reasons for his bullish on Ethereum (ETH) and why he is continuing to cost average into Ethereum.
#1 The first reason on the trader’s list is Ethereum ETFs are here, and will only become more prevalent. Canada and now Brazil have approved ETH ETFs. There are multiple ETH ETF applications sitting with the SEC in the USA. Approval of which will unleash a tsunami of money onto ETH.
Davis then cites an article saying that SkyBridge Capital’s CEO Anthony Scaramucci confirmed in a podcast that his investment firm is launching a private Ethereum fund on July 1st and will file for an Ether exchange-traded fund (ETF) as well, as they branch out from bitcoin.
#2 Secondly, the crypto KOL holds a strong perspective that Ethereum is the king of innovation in crypto, with the biggest development lead.
“The release of multiple layer two implementations really underlines this. Uniswap, the biggest DEX on ETH, has just announced its integration of Optimism for scaling. This kills the ETH killers.”, the trader says.
#3 “The triple halving is coming. This is bullish for ETH,”
Ethereum’s Triple Halving has its roots in the reduction in supply, Following a successful upgrade to EIP 1559, a drop in sell pressure is expected. Analysts believe that a 30% reduction of circulating Ether could take place, which is about half of the effect of a single Bitcoin halving. Meanwhile, the transition to PoS might result in a supply shock equivalent to two halvings.
Currently, ETH annual inflation is around 4.5%, as part of the ETH 2.0 upgrade that will drop to around 0.5%, equivalent to 3 Bitcoin halvings.
#4 It is also worth mentioned that EIP 1559 which will be implemented in August. This will burn the fees paid for some transactions which over time will make ETH into a delfationary currency.
“Basically an automated perpetual stock buy back mechanism.”
#5 The trader also believes that the Proof of Stake is coming, possibly this year. This will fundamentally change the economics from a mine and dump economy, to a stake and hodl economy.
#6 “Demand for Ethereum continues to be incredible. Seems not everyone is sleeping on ETH,”
On exchange supplies keep hitting new lows and the amount of ETH locked in the 2.0 staking contract continues to grow with more than 6.2 million ETH locked in 2.0.
#7 And lastly, Ethereum has been flipping Bitcoin on most metrics. The analyst presents a chart showing that Ethereum is settling 3X more than Bitcoin every day on chain.
Besides, Ethereum is crushing it in terms of fees too. And most importantly the applications are. Uniswap takes in more in fees than Bitcoin. These are real companies with real economic models that work.
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