on the crypto
Lark Davis, a popular cryptocurrency analyst and YouTuber, hinted at a possible 500% increase in the price of Ethereum in a recent update. According to him, Ethereum will not only take the market by storm, but it will also bring Bitcoin down.
Davis said Ethereum's recent price correction was due to short-term panic. This does not detract from the key metrics Ethereum is exploding on and the recent activity occurring in the ecosystem.
The economy of Ethereum
Ethereum currently has a market capitalization of $ 334 billion. According to Lark Davis, this can go up to $ 2 trillion.
He claimed that Ethereum is the liquidation level of the cryptoverse and has applications like decentralized finance and non-fungible tokens that are experiencing a boom. Additionally, Davis revealed that Ethereum's price will be heavily influenced by the many potential users who find interest in smart contracts.
The total value locked in smart contracts over the past 12 months has increased by more than 9.000 percent. Furthermore, the growth of smart contracts is currently set at over 1.300% over the same period.
Most Ethereum users use the asset for their usual buying and holding activity. Once they start getting involved in all the developments, the price will definitely go up.
On-chain activity to fuel the price of Ethereum
Davis explained that the total regulated value on the Ethereum blockchain is 46,377 billion, compared to 30 billion per day. This is far more than Bitcoin's 14 billion a day. According to the market watcher, the reason is that Bitcoin is digital gold, and it is only used for trading and as a store of value.
Ethereum on the other hand goes beyond store of value, as it is used to borrow, lend, NFT, Defi and much more. Bitcoin is not used because there is no Bitcoin application.
Proof-of-Stake (PoS)
The recent debate on Proof-of-Work (PoW) consuming so much energy has forced several companies to withdraw from Bitcoin investments and related donations. Ethereum seeks to win the hearts of individuals and organizations with the PoS which is energy efficient.
Store of value
Bitcoin is widely known to be the most favorable store of value. Lark Davis said Ethereum is likely to be behind Bitcoin as a store of value, but will surpass that once all the projects in the pipeline are implemented. The upcoming triple inflation will reduce Ethereum's issuance rate from 4,5% to 0,5%. Furthermore, the EIP-1559 project will make Ethereum a deflationary asset and reduce its transaction fees. This will make Ethereum a serious store of value.
Institutional interest
Institutional investors bought more Ethereum than Bitcoin last month for the first time. This means that institutions are waking up to the reality of Ethereum. Bitcoin is gold and Ethereum is the Apple of the crypto space.
