10 Reasons Why Ethereum Can Break $10,000

This year has been a rollercoaster ride for Ethereum, with Ethereum starting 2021 at just over $720. However, at the time of writing this report, the price of Ethereum is only slightly below $4,100.

Due to its performance, many crypto advocates have come up with their own predictions for Ethereum’s current rally. A common saying on CryptoTwitter lately is, "Ethereum is already on its way to $10,000." 

Spencer Noon, the founder of Our Network, laid out the rationale for his Ethereum bull prediction in a recent report.

According to Noon, here are 10 reasons why Ethereum is poised to hit $10K. the

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

“Ethereum dwarfs every blockchain when it comes to payment fees, with current network fees approaching $7 billion, confirming the huge demand for Ethereum,” the analyst noted.

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Second, “Etalum’s daily settlements are worth $30.5 billion, far more than Bitcoin and all other blockchains combined, and in context, PayPal pays $2.5 billion per day.”

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Third, there has been a corresponding surge in active-zce wallets on Ethereum, with its daily active-zce 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, “There is now $65 billion locked in DeFi, with 16 different projects worth more than $1 billion, showing that Ethereum is a financial technology for institutional adoption.”

The fifth reason is the supply of stablecoins. Ethereum’s current stablecoin supply is over $50 billion, and the network has 500,000 unique senders per day. What's more, "Trading over $20 billion per day is the hallmark of an explosive product that fits the market."

The sixth reason has to do with DeFi’s liquidity, as DEX volumes have been surging across the board. Noon pointed out that the trading volume of DEX has exceeded 60 billion US dollars, an increase of nearly 60 times, which proves that the liquidity of DeFi has already competed with CeFi. It's worth noting here that PanteraCapital recently spotted something similar. the

Arguably, Ethereum is becoming more attractive thanks to its emergence as an "economic vacuum for all assets, including Bitcoin." Nowhere is this more evident than in, “200K+ BTC now in various forms on Ethereum.”

There are other reasons that could lead to a surge to Ethereum $10,000. First of all, NFTS is probably the hottest sector this year, with sales of $600 million. The emergence and success of projects such as the Polygon network based on Ethereum has also refuted the claim that "Ethereum cannot scale narratives". the

In the end, perhaps the most critical factor driving the value of Ethereum may be the hype and progress surrounding EIP-1559.

Noon pointed out that "In less than 3 months, the upgrade of EIP-1559 will be launched, which may cause hundreds of millions of dollars worth of Ethereum to be burned every year. This is a huge value of Ethereum and its overall fundamental investment case Catalyst."

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