According to Trader Lark Davis, Ethereum could crash into the stratosphere because of these four catalysts
Crypto trader and influencer Lark Davis says four catalysts could spark a major Ethereum rally in the near future.
In a new video, Davis explains why he thinks ETH will take off, first noting that Ethereum had about 200,000 more daily active addresses than Bitcoin over the past month. The popular crypto analyst also highlights the slow but steady upward trend in the number of Ethereum addresses that are active daily.
Davis says the increase in on-chain activity is due to the fact that Ethereum has a large number of use cases compared to other crypto assets.
“You can just do so much more with Ethereum, right? You can do decentralized financing (DeFi), buy non-fungible tokens (NFTs) or send stablecoins or whatever else you want to do on Ethereum. “
The analyst also points out that Twitter is now using the Ethereum network to coin NFTs, despite the company’s CEO Jack Dorsey having long been known as a bitcoin maximalist.
“That is really very big. Twitter CEO Jack Dorsey, famous hardcore Bitcoin maximalist with Ethereum. Twitter gave away 140 free NFTs … This suggests Twitter is using Ethereum. Despite all of Jack Dorsey’s rhetoric that Bitcoin is the best in the universe, the reality here is: Twitter still hasn’t bought Bitcoin for its corporate reserves. But Twitter uses Ethereum. “
Another catalyst that could spark a serious Ethereum run is the SEC’s approval of an Ethereum exchange-traded fund (ETF), according to Davis.
“We have a new Ethereum ETF application that has come out. [This] could unleash a wave of incredible liquidity into these markets. If the SEC were to approve just one or two Ethereum ETFs this year, it would immediately mean that all of these traditional investors and all of these big funds that will simply never buy Bitcoin and Ethereum in the open market will now have the option Simply deposit a BTC ETF or ETH ETF into your retirement accounts. It’s a big deal. “
Eventually, Davis notes that nearly six million Ethereum were used on the Ethereum 2.0 deposit contract, which means that a large part of the ETH offering is locked.
“Ethereum 2.0 is approaching six million pegged Ethereum. That’s a lot of belief in the ETH 2.0 network … you have to keep in mind if you lock your Ethereum in the staking contract, that’s a one-way trip. [It] goes in, won’t come out again. “
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