On Thursday (March 18), the popular crypto-analyst and influencer, New Zealand, Lark Davis (@TheCryptoLark on Twitter) talked about the reasons for its bullishness on Ethereum (ETH).
Davis began by talking about the offering of Ethereum:
‘Let’s start with the discussion of Ethereum first. This week we had the second largest Ethereum outflow of centralized exchanges with 235,000 Ethereum withdrawn within one hour. When the price dropped, buyers increased greatly. This is of course only the second biggest of this year, but it does show that interest in Ethereum is currently very high … This is bullish because it shows that the demand for Ethereum is still red-hot. In fact, exchange rates for Ethereum have just reached a new low. Ethereum is an accumulation mode; whales still buy heavily.‘
He then explains that the reason for the growing demand for Ethereum for investors is that many of them expect the Ethereum price to rise to $ 10,000 and possibly ‘much higher than that.’
Here are the main reasons for Davis’ bullishness on Ethereum:
NFT Mania
‘Of course, everyone seems to be talking about NFTs these days, and this is really important because a whole new audience of people is being exposed to an exciting use case for cryptocurrency and of course Ethereum …
‘Every major NFT market is an Ethereum market … other chains are going to do NFTs … but as so often happens, all the liquidity and all the most valuable things are on Ethereum.‘
Great potential of DeFi
‘We only have 1.6 million unique addresses using DeFi protocols. This means that only about 3.5% of all active Ethereum wallets have used DeFi. The biggest thing that is happening in cryptocurrencies is still that only a small fraction of users actually use it. This is insane. It says one thing to me: we are so early for DeFi and there is still so much room to grow … other chains are doing DeFi … but again building the biggest and best protocols with the deepest liquidity on Ethereum.‘
100X scale coming soon
‘Ethereum is currently working very hard on the scale. In fact, there is a major upgrade underway that will likely be sent to the Ethereum lunar network within the next few weeks, and that will completely change the way we reimburse Etheruem fees. This is called Optimism, a layer 2 scale solution that essentially enables 100X scalability for Ethereum. It scales both simple transactions and the most important smart contracts.‘
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The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.