On Thursday (March 18), New Zealand-based crypto analyst and influencer Lark Davis@CryptoLark on Twitter) talked about the reasons for his rise in Ethereum (ETH).
Davis began by talking about the supply of Ethereum:
“First, let’s start talking about the Ethereum supply right now. This week, we had the second largest Ethereum outing of centralized exchanges with 235,000 Ethereum withdrawn in a single hour. When the price went down, buyers stepped up. This is only the second largest this year, of course, but it still shows that right now the interest in Ethereum is very high … This is bullish as it shows that the demand for Ethereum is still burning. In fact, Ethereum’s stock balances have just hit a new low. Ethereum is in build mode; whales still buy a lot.“
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 go up to $ 10,000 and possibly “much higher than that”.
These are the main reasons for Davis’ brutality about Ethereum:
NFT Mania
“It seems like everyone, of course, is talking about NFTs today, and this is really important because a whole new audience of people is exposed to an exciting use case for cryptocurrency and of course for Ethereum …
“All the major NFT markets are an Ethereum market … other chains will make NFT … but, as often happens, all the liquidity and all the most valuable is in Ethereum.“
Huge potential for DeFi
“We still have only 1.6 million unique addresses that have used DeFi protocols. This means that only about 3.5% of all Ethereum active portfolios have used DeFi. The most important thing that happens to cryptocurrencies is that only a small fraction of users have used it. This is madness. This tells me one thing: we are so early for DeFi and there is still a lot of room to grow … other chains make DeFi … but again, the bigger and better protocols with deeper liquidity are based on Ethereum .“
The 100X scale soon
“Right now, Ethereum is working very hard on the scale. In fact, a major update is underway that will likely be shipped to the main Ethereum network over the next few weeks, a couple of months at most, which will completely change the way we do Etheruem rates to reduce rates massively. It’s called Optimism, a layer 2 scaling solution that will basically allow 100X scalability for Ethereum. This will scale both simple transactions and most importantly smart contracts.“
Featured image of “elifxlite” via Pixabay.com
The opinions and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.