On Thursday (March 18), popular New Zealand crypto analyst and influencer Lark Davis (@TheCryptoLark on Twitter) talked about the reasons for his high on Ethereum (ETH).
Davis began by talking about supplying Ethereum:
“First, let’s start by talking about the supply of Ethereum now. This week, we had Ethereum’s second largest outflow from centralized exchanges with 235,000 Ethereum withdrawn in a single hour. When the price fell, buyers rose sharply. It is only the second largest this year, of course, but it still shows that interest is now very high in Ethereum … This is optimistic, as it shows that demand is still high for Ethereum. In fact, Ethereum’s foreign exchange balances have just reached a new low. Ethereum is in accumulation mode; whales are still buying heavily.“
He then explained that the reason for so much 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’s optimism on Ethereum:
NFT Mania
“It seems that everyone, of course, is talking about NFTs today, and this is very important because a new audience of people is being exposed to an exciting use case for cryptocurrency and, of course, for Ethereum …
“All major NFT markets are Ethereum markets … other networks will make NFTs … but, as always, all liquidity and all the most valuable things are in Ethereum.“
Great DeFi potential
“We still have only 1.6 million unique addresses that used DeFi protocols. This means that only about 3.5% of all active Ethereum portfolios used DeFi. The biggest thing that happens in cryptocurrencies is that only a small fraction of users actually use them. This is insane. This tells me one thing: we are so far ahead for DeFi and there is still a lot of room to grow … other networks are making DeFi … but again the biggest and best protocols with the highest liquidity are being built in Ethereum.“
100X schedule coming soon
“Ethereum is working hard on scaling now. In fact, a major update is underway and is likely to be sent to the main Ethereum network in the coming weeks, at most a few months at most, which will totally change the way we charge Etheruem fees to reduce fees massively. It’s called Optimism, a layer 2 scaling solution that will essentially allow 100X scalability for Ethereum. This will escalate simple transactions and, most importantly, smart contracts.“
Featured image by “elifxlite” via Pixabay.com
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.