If you look at Ethereum now, it won’t be ‘crazy’ to expect this

Ethereum, the second largest crypto token, has seen a significant leap into the green zone after its much-anticipated EIP-1559 upgrade. However, at the time of publication, the largest altcoin was trading at $ 2,952, up 7% over the past 24 hours.

Though the asset has suffered a setback, analyst Lark Davis has outlined his reasons in his latest YouTube video to remain bullish.

Davis kicked off the discussion by first talking about the trending EIP 1559 scenarios. Within the first 12 hours after the start, more than 3,000 ETH were burned. In a tweet on August 6th, he mentioned

EIP 1559 went live today.
More than 3,000 ETH were burned.

We are on course to burn about 6 to 7000 ETH in the first 24 hours.

12,000 ETH will be dismantled today.

This equates to about a 50% reduction in the delivery flow and we’re still waiting for the big wallets to be upgraded

– Lark Davis (@TheCryptoLark) August 6, 2021

He further explained in the video,

“We’ll see large wallets upgraded in the next few days to support this more directly, but still very bullish.”

In addition, ETH’s transition to a proof-of-stake consensus (within about 6 months) will reduce ETH’s energy consumption by 99.95%, “essentially, the electricity consumption of a small country is reduced to a small city,” added he added. This could be a recent breakthrough, especially if energy usage is a big issue. As is well known, Bitcoin, the only cryptocurrency larger than ETH, has been criticized before because of rising ESG concerns.

In addition, the decline in Ethereum inflation rates also paints a bullish portrait. According to reports, “the current Ethereum inflation rate is 4.3%. As part of the ETH 2.0 upgrade, this inflation will be reduced by 90% to 0.43%. The so-called triple halving. ”If you compare this with BTC, the former shows a strong hand against its counterpart. The analyst added:

“Bitcoin is currently at 1.8%, it will take 3 more halves of Bitcoin to have a lower inflation rate than ETH.”

But there is something to be considered here – as things stand, ETH transactions are associated with a considerable part of the gas fees. Still bullish? Yes, because it shows that users have a very high demand for access to the chain. 1.2 million transactions per day on average “Blow other chains out of the water because people want what ETH has!” said Davis.

In the meantime, many teams (Optimism, Arbitrum, StartkWare and Sidechain Polygon) are working on layer 2 scaling solutions in the ETH network in order to further address the current setbacks in this network. Once again, Davis offered an optimistic outlook.

“Yes, the fees are high, but there are options, these options are getting better, they are being used more and more, so you can spend more time in the city of Ethereum.”

BTC vs. ETH

That debate has been raging for a year or two, with the former dominating the market. However, Davis noted in this regard: “Ethereum is now often comparable to Bitcoin in terms of daily trading volume, outperforms or just on the heels, and yet has half the market capitalization of Bitcoin! Something feels undervalued to me! “

Keep in mind that ETH has half the market capitalization of BTC and yet has essentially the same daily trading volume as BTC. It would be fair to say that the aforementioned analyst is rooting ETH. In a recent tweet, he said:

#ethereum at $ 21,000 would be the same market cap as Apple.

Really not that crazy, considering what ETH is building.

– Lark Davis (@TheCryptoLark) August 8, 2021

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