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Perhaps the most critical factor driving the value of Ethereum is the progress around EIP-1559.
Original title: “Our Network Creator: 10 Reasons Why Ethereum Can Break Through US$10,000”
Written by: ambcrypto
Compilation: Blockchain Knight
This year is a roller coaster year for Ethereum. At the beginning of 2021, the price of Ethereum is slightly higher than US$720. However, at the time of writing this report, the price of Ethereum is only slightly less than $4,100.
Due to its performance, many proponents in the crypto field have put forward their own predictions for Ethereum’s current rebound. A common saying on CryptoTwitter recently is, “Ethereum is already on its way to $10,000 .”
Spencer Noon, the founder of Our Network, put forward his reasons for the Ethereum bull market in a recent report.
According to Noon, there are 10 reasons why Ethereum is expected to reach $10,000.
First of all, among all cryptocurrencies including Bitcoin, ETH earns the most revenue from network fees .
The analyst pointed out that “Ethereum dwarfs every blockchain in terms of payment fees. The current network fees are close to $7 billion, confirming the huge demand for Ethereum.”
Second, ” Etalum’s daily settlement value is 30.5 billion U.S. dollars, far more than Bitcoin and all other blockchains combined . In this context, PayPal pays 2.5 billion U.S. dollars a day.”
Third, Ethereum’s active wallets also have a corresponding surge , with the number of daily active addresses rising to 625 K (90-day MA), far exceeding its historical high.
The fourth reason is that DeFi relies heavily on the Ethereum network and Ethereum has become more attractive to institutions.
Noon pointed out, “There are currently $65 billion locked in by DeFi, and there are 16 different projects with a total value of more than $1 billion, which shows that Ethereum is a financial technology adopted by institutions.”
The fifth reason is the supply of stablecoins . Ethereum’s current stablecoin supply exceeds $50 billion, and the network has 500,000 unique senders every day. More importantly, “The daily transaction volume exceeds 20 billion U.S. dollars, which is a sign of an explosive product in line with the market.”
The sixth reason is related to the liquidity of DeFi, because DEX trading volume has been soaring across the board . Noon pointed out that DEX trading volume exceeded 60 billion U.S. dollars, an increase of nearly 60 times, proving that DeFi’s liquidity has competed with CeFi. It is worth noting here that PanteraCapital recently discovered something similar.
It can be said that Ethereum is becoming more attractive thanks to its emergence as an “economic vacuum for all assets including Bitcoin.” The most proof of this is that “BTC over 200K is now appearing on Ethereum in various forms.”
There are other reasons that may cause the soaring to the Ethereum million US dollars. First of all, NFTS may be the hottest sector this year , with sales of up to 600 million US dollars. The emergence and success of projects such as the Polygon network based on Ethereum also refutes the statement that “Ethereum cannot expand the narrative”.
Finally, perhaps the most critical factor driving the value of Ethereum may be the promotion and progress around EIP-1559 .
Noon pointed out that “in less than 3 months, the upgrade of EIP-1559 will be launched, which may result in the burning of hundreds of millions of dollars worth of Ethereum every year. This is a huge Ethereum value and its overall basic investment case. Catalyst.”
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