It’s been quite a roller-coaster of a year for Ethereum. When 2021 began, ETH was valued at just over $720 on the charts. At the time of writing, however, ETH was trading just under the $4100-level.
Thanks to the scale of its performance, many crypto-enthusiasts have presented their own predictions for Ethereum’s current rally. ‘ETH is well on its way to $10k,’ for instance, is a statement that is common on Crypto-Twitter these days.
Spencer Noon, the creator of ‘Our Network’, recently presented his case for Ethereum’s bullish projection in a series of tweets.
According to Noon, there are 10 reasons why ETH will hit $10k.
- ETH generated the most revenue from network fees out of any cryptocurrency out there, including Bitcoin.
The analyst pointed out,
“Ethereum dwarfs every blockchain in terms of fees paid, with a current run rate of nearly $7 billion — confirming massive demand for ETH block space.”
- Secondly, “Ethereum settles $30.5 billion worth of value per day, far more than Bitcoin and every other blockchain — to put this into context, PayPal settles ~$2.5 billion daily.”
- There has also been a corresponding surge in Ethereum’s active wallets, with its daily active addresses count climbing to 625K (90-day MA) recently – Well over its previous ATH on the charts.
- The fourth reason shed light on the DeFi space, its heavy dependency on the Ethereum network, and why the alt is getting more appealing to institutions. According to Noon,
“There is now $65 billion locked in DeFi, with 16 different projects having more than $1B TVL — a sign that Ethereum is institutional-grade financial technology.”
- Then there is the question of the outstanding supply of stablecoins. Ethereum, right now, has over $50B in outstanding stablecoin supply, with the network enjoying 500k daily unique senders. What’s more, “$20B in value are being exchanged per day — a sign of explosive product-market fit.”
- The sixth reason was in relation to DeFi’s liquidity as DEX volumes have been surging across the board. Monthly DEX volume, Noon found, stood at more than $60B, up ~60x YoY — “proving DeFi liquidity already rivals #CeFi.” Here, it’s worth noting that something similar was found out by a recent Pantera Capital finding.
- Ethereum, it can be argued, is also becoming more appealing thanks to its emergence as an “economic vacuum for all assets, including Bitcoin.” This can be best evidenced by the fact that “over 200K BTC are now represented on Ethereum in various forms.”
There are other reasons too, factors that may all contribute to ETH’s surge to $10,000 one day. NFTs, for starters, perhaps the space’s hottest property this year, have seen their sales cross $600M on Ethereum. The emergence and success of projects such as the Ethereum-based Polygon network have also disproved the “Ethereum can’t scale narrative.”
Finally, perhaps the most crucial factor that may be driving ETH’s value may be the hype and progress around EIP-1559. According to Noon,
“Finally, in less than 3 months(!), the EIP-1559 upgrade will be activated, likely resulting in hundreds of millions worth of ETH being burned each year — this is a massive catalyst for ETH value capture and its overall fundamental investment case.“