Popular crypto trader and analyst Coin Bureau is highlighting why he sees Ethereum (ETH) blasting through the $4,000 level by the time July comes to a close.
In a new video, the pseudonymous trader known as Guy starts off by taking note of the massive rise in active addresses on the Ethereum network.
“Recently the Ethereum network demand has been surging. You only need to take a look at the total number of active addresses on the network. As you can see, this is at an all-time high of over 580,000 addresses.”
In his view, the expanding demand for the Ethereum network comes down to three main factors: decentralized finance (DeFi), stablecoins, and NFTs. All three spaces which are growing at exponential rates, predominantly rely on Ethereum’s network more than anything else, creating a massive need for the world’s leading smart contract platform.
The trader also highlights the dwindling supply of Ethereum and the interesting relationship developing between the amount of ETH leaving exchanges and the amount being locked up inside smart contracts.
“That’s right, it’s almost as if they have a perfect inverse relationship. Money flowing off the exchanges tends be to heading toward smart contracts.”
On top of Ethereum’s growing demand and ecosystem, Coin Bureau notes that the highly-anticipated EIP 1159 upgrade, which seeks to make the Ethereum network more cost-efficient, is coming up and it could potentially ignite ETH’s ascent to greater heights.
“Ethereum really is so exciting. I view it in the same way that those internet pioneers viewed TCP/IP back in the 1990s. However, this time around, we have an opportunity to invest in a protocol that has that much potential… Ethereum is well-positioned to capture the value that’s being built on top of it. And as the fuel that powers the network, ETH is becoming an incredibly rare asset. The more the ecosystem grows, the more demand there is for ETH to power dApps (decentralized apps) and facilitate transactions…
If the Ethereum developers are able to effectively push EIP 1559 in the London upgrade, then we could easily see ETH above $4,000 by the end of July.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Sergey Nivens