- Lark Davis says Ethereum is set for a bull run and will crash Bitcoin.
- Ethereum seeks to win the hearts of individuals and organizations with PoS which is about 99.95 percent more energy-efficient.
Lark Davis, a popular cryptocurrency analyst and YouTuber has in a recent update hinted at a possible 500 percent surge for the Ethereum price. According to him, Ethereum will not only take the market by storm but will also crash Bitcoin.
Davis stated that the recent Ethereum price correction was due to short-term panic.
This does not take anything away from the key metrics Ethereum is exploding on, and the recent activities happening in the ecosystem.
Shedding more light on this, he provided important points to support his prediction.
The pumping Ethereum economy
Ethereum currently has a market cap of $334 billion. According to Lark Davis, this can go as high as $2 trillion to close in on Apple which has a market cap of a little over $2 trillion.
He mentioned that Ethereum is the settlement layer of the cryptoverse, and has applications like decentralized finance and Non-Fungible Tokens experiencing a boom. In addition, Davis revealed that the price of Ethereum will massively be impacted by the many potential users who will find interest in smart contracts.
The total value locked in smart contracts in the last 12 months is up by over 9,000 percent. Also, the smart contract growth is currently pegged at over 1,300 percent over the same period. The decentralized finance exchange volume has also seen a more than 8,500 percent surge, showing a growing user base.
Most Ethereum users use the asset for the usual buy and hold activity. Once they start getting involved in all the exciting developments, the price will certainly rise by a considerable margin.
On-chain activity to fuel Ethereum price
Davis explained that the total value being settled on-chain by Ethereum is 46.377 billion, up from 30 billion per day. This is far more than the 14 billion per day recorded by Bitcoin. According to the market observer, the reason is that Bitcoin is digital gold, and it is just used for trade and as a store of value.
Ethereum on the other hand goes beyond the store of value property as it is used in borrowing, lending, NFTs, Defi, and many others. Bitcoin is not being used because there is no Bitcoin application.
ETH volumes have been exploding recently and have surpassed BTC volumes for the past month.
ATHs $20+ billion in daily spot volume. pic.twitter.com/Rv9rLlC9tl
— Ryan Watkins (@RyanWatkins_) May 26, 2021
The recent debate surrounding Proof-of-Work (PoW) consuming so much energy has forced several companies to withdraw from Bitcoin investment and related donations. Ethereum seeks to win the hearts of individuals and organizations with the PoS which is about 99.95 percent energy-efficient.
Ethereum finds innovative approaches to technological advances while Bitcoin is a hyper-conservative crypto.
Store of value
Bitcoin is widely known to be the most favorable store of value. Lark Davis said Ethereum is probably behind Bitcoin as a store of value but will overtake it once all the projects in the pipeline are implemented. The upcoming triple inflation will reduce the Ethereum emission rate from 4.5 percent to 0.5 percent. In addition, the EIP-1559 project will make Ethereum a deflationary asset and reduce its transaction fees. These will make Ethereum a serious store of value.
Cathie Wood’s Ark Invest has for the first time bought 639,000 shares of Grayscale Ethereum Trust. According to Davis, Cathie is a Bitcoin bull, but she also sees a lot of potential in Ethereum.
Institutional investors bought more Ethereum than Bitcoin last month for the first time. This means institutions are waking up to the reality of Ethereum. Bitcoin is gold, and Ethereum is the Apple of the crypto space.