Ethereum’s price has been relatively flat in relation to the rest of the cryptocurrency market for quite some time. As the cryptocurrency dropped below the crucial level of $2000, there was a growing sense of panic among holders. However, Ethereum’s price has already soared to $2010, and it is projected to cross the next point of resistance at an estimated $2020 considerably sooner.
Despite the fact that some may consider Ethereum’s price momentum to be slow, everything about the coin’s core statistics, network development, and institutional acceptance rate all point to the coin’s future potential.
Analyst Lark Davis, who is also a proponent of Ethereum and has been conducting his own analysis and trading for quite some time, has published a new video in which he supports the case for Ethereum’s long-term bullish run.
He claims that starting on August 4th, Ethereum will be subjected to a massive supply shock. He goes on to explain why he believes this and how Ethereum will become more deflationary and therefore more valuable as a result.
London Hardfork goes live on August 4th
The first reason or factor driving his claims is that the much-anticipated launch of the London Hardfork on the mainnet. The hardfork includes EIP 1559, which is widely used to make Ethereum transactions more efficient by employing a hybrid system of tokens and base fees, as well as tips for motivating miners as needed.
According to Davis, this will become a perpetual stock buyback mechanism. Although the debut date has been pushed back, it is finally poised to happen. Davis believes that this occurrence will activate Ethereum’s scarcity engine.
ETH 2.0 has already been confirmed by 195,878 organisations. These entities are in charge of the network, which has a total deposit of over 6.268 million ethers. He also noted that more and more Ethereum is flowing into ETH 2.0 and staking contracts with each passing day. After that, they are mined. This also demonstrates that large sums of money are being invested in the ETH 2.0 network and staked into the contract. This is a really positive indicator for the network, according to Davis.
Bitcoin on Ethereum
According to the Block Portal, 250000 Bitcoins were recently pumped into Ethereum. This statistic was also mentioned by Davis to demonstrate that Ethereum has a much larger number of use cases in the world of Decentralized Finance.Ethereum provides a number of protocols, some of which enable users to use their Bitcoin holdings on the Ethereum network. On a daily basis, this adaptability attracts an increasing number of users.
The Ethereum ecosystem now has 3 million users!
The Ethereum ecosystem has reached 3 million users! This simply indicates that individuals and organisations are becoming more interested in using Ethereum for their transactions, as evidenced by its increasing rate of acceptance among users. The most remarkable aspect of this massive surge in user base, according to Davis, is that it only took 142 days for Ethereum to go from one million to two million users. However, it only took 78 days to reach three million users from two million. This incredible speed demonstrates how quickly the network’s adaptability is growing.