On Thursday (March 18), the well-known New Zealand cryptanalyst and influencer Lark Davis (@TheCryptoLark on Twitter) spoke about the reasons for his upward movement in Ethereum (ETH).
Davis initially spoke about the Ethereum supply:
“First, let’s talk about the Ethereum supply. This week we had the second largest Ethereum outflow from centralized exchanges, with 235,000 Ethereum withdrawn in a single hour. As the price fell, buyers rose sharply. That’s only the second largest this year, of course, but it still shows that the interest in Ethereum is very high right now … This is bullish as it shows that the demand for Ethereum is still hot. In fact, Ethereum’s wallet balances just hit a new low. The Ethereum is in accumulation mode. Whales are still buying heavily. “
He then explained that the reason why there is so much demand for Ethereum from investors is that many of them expect the Ethereum price to rise to $ 10,000 and possibly “much higher”.
Here are the main reasons for Davis’ uptrend in Ethereum:
“Apparently everyone is talking about NFTs these days, and that’s really important because a whole new audience is being exposed to an exciting use case for cryptocurrency and of course Ethereum …
“Every major NFT market is an Ethereum market … other chains will do NFTs … but as is so often the case, all of the liquidity and most valuable material is in Ethereum.”
DeFi has huge potential
“We still only have 1.6 million unique addresses that used DeFi protocols. That means that only around 3.5% of all active Ethereum wallets have used DeFi. The biggest thing that happens in cryptocurrencies is that only a tiny fraction of users have actually used it. That’s crazy. This tells me one thing: We are so early for DeFi and there is still so much room to grow … other chains are doing DeFi … but here, too, the largest and best protocols with the deepest liquidity are based on Ethereum. “
100x scaling available soon
“Ethereum is currently working very hard on scaling. In fact, a major upgrade is underway that will likely be shipped to the Ethereum mainnet in the next few weeks, at the latest in a few months. This will fundamentally change the way we charge fees in order to massively lower the fees. It’s called Optimism, a Layer 2 scaling solution that essentially allows 100x scalability for Ethereum. This will scale both simple transactions and, above all, smart contracts. “
Selected image from “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.