Our Network creator: 10 reasons why Ethereum can break through $10,000

This has been a roller coaster year for Ethereum, which started 2021 at just over $720. However, at the time of writing, the price of Ethereum is just under $4,100.

Due to its performance, many crypto advocates have come up with their own predictions for Ethereum’s current rally. One recent statement that has become common on CryptoTwitter is that “Ethereum is already on its way to $10,000.”

In a recent report, Our Network founder Spencer Noon laid out his case for a bull run in Ethereum.

According to Noon, here are 10 reasons why Ethereum could hit $10,000.

First, of all cryptocurrencies, including Bitcoin, ETH generates the most revenue from network fees.

“Ethereum dwarfs every other blockchain in terms of payment fees, with current network fees approaching $7 billion, confirming the massive demand for Ethereum,” the analyst noted.

Second, “Etalum settles $30.5 billion worth of settlements per day, far more than Bitcoin and all other blockchains combined. To put this in context, PayPal pays out $2.5 billion per day.”

Third, there was a corresponding surge in Ethereum’s active wallets, with its daily active addresses rising to 625K (90-day MA), far exceeding its all-time high.

The fourth reason is DeFi’s heavy reliance on the Ethereum network and Ethereum becoming more attractive to institutions.

Noon noted that “there is now $65 billion locked in DeFi, with 16 different projects with a total value of over $1 billion, which shows that Ethereum is a financial technology that is gaining adoption among 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 per day. More importantly, “daily transaction volume exceeds $20 billion, which is a sign of an explosive product that meets the market.”

The sixth reason is related to DeFi's liquidity, as DEX trading volumes have been surging across the board. Noon pointed out that DEX volume exceeded $60 billion, an increase of nearly 60 times, proving that DeFi's liquidity is already competitive with CeFi. It is worth noting here that PanteraCapital recently discovered something similar.

Arguably, Ethereum is becoming more attractive thanks to its emergence as an “economic vacuum for all assets, including Bitcoin.” This is best evidenced by the fact that “over 200K BTC now sits on Ethereum in various forms.”

There are other reasons that could lead to the surge to $100 million in Ethereum. First, NFTS may be the hottest sector this year, with sales of up to $600 million. The emergence and success of projects such as the Ethereum-based Polygon network also refutes the argument that "Ethereum cannot scale narrative."

Finally, perhaps the most critical factor driving Ethereum’s value may be the publicity and progress surrounding EIP-1559.

Noon noted that “in less than 3 months, the EIP-1559 upgrade will be activated, potentially resulting in hundreds of millions of dollars worth of Ethereum being burned annually, a massive catalyst for the value of Ethereum and its overall fundamental investment case.”

The original text comes from ambcrypto, compiled and edited by Blockchain Knight. The English copyright belongs to the original author. Please contact the translator for Chinese reprint.