2021 is an exciting year for the crypto market in general and for the Ethereum coin in particular.
When 2021 began, Ethereum was worth just over $ 720.
At the time of writing this article, Ethereum is trading just below the $ 4000 level.
Thanks to the striking performance of the currency and its double digit rise in a short period of time, many cryptocurrency enthusiasts have made their own predictions about the current rally of Ethereum, and see it on its way to the $ 10,000 level.
Spencer Nunn, founder of Our Network , recently shared his bullish forecasts for Ethereum in a series of tweets.
According to “Noon”, there are 7 reasons why Ethereum may reach $ 10,000:
1- Ethereum achieves the largest revenue from network fees:
Analyst Spencer Noon commented on this by saying:
ETHEREUM DWARFS THE REST OF THE BLOCKCHAIN NETWORKS AHEAD IN TERMS OF FEES PAID.
CURRENTLY, ETHEREUM HAS CLOSE TO $ 7 BILLION, CONFIRMING THE HUGE DEMAND FOR ETHEREUM SPACE.
2- Ethereum settled $ 30.5 billion worth of value per day, much more than Bitcoin and every other blockchain:
To understand this context, we compare what Ethereum settles with Paypal, which only accounts for about $ 2.5 billion per day.
3- High Active Ethereum Governor:
The number of active daily Ethereum addresses and wallets increased to 625K (90-day moving average) recently, well above the level recorded earlier:
4- Approval of DeFi projects for decentralized financing on Ethereum:
According to “Spencer Nunn”:
THERE ARE NOW $ 65 BILLION LOCKED IN DECENTRALIZED FINANCING PROJECTS, WITH 16 DIFFERENT PROJECTS HAVING MORE THAN $ 1 BILLION IN CLOSED VALUE “TVL” A SIGN THAT ETHEREUM IS AN INSTITUTIONAL-GRADE FINANCIAL TECHNOLOGY.
5- Increasing the supply and market value of stablecoins based on Ethereum:
Ethereum currently has more than $ 50 billion in stable coin supply, with the network having 500,000 unique transmitters per day.
Additionally, $ 20 billion is exchanged per day, which is a sign of Ethereum’s suitability for robust products.
6- Increasing the liquidity of the Ethereum-based DEX decentralized trading platforms:
The sixth reason is related to the liquidity of DeFi projects, as trading volumes increased on the DEX decentralized trading platforms.
Noon found that the trading volume of the DEX decentralized trading platform amounted to more than $ 60 billion, an increase of nearly 60 times year-on-year.
It can be said that Ethereum has also become more attractive thanks to its emergence as “an economic container for all assets, including Bitcoin.”
This can be better demonstrated by the fact that more than 200,000 Bitcoins are now represented on Ethereum in various forms.
7- The boom of non-exchangeable digital codes (NFT):
Sales of NFT tokens have seen sales exceed $ 600 million on Ethereum.
Finally, and perhaps the most important reason that may drive the value of Ethereum to such high levels is the hype and progress over the EIP-1559 upgrade that will replace the mining mechanism with blocking and burn fees, making the Ethereum supply shrinking.
These were the main reasons that could lead Ethereum to breach the $ 10,000 level.