Ethereum’s fundamentals and network utilization will push the price of the native cryptocurrency to a five-digit price territory, believes a popular cryptocurrency commentator. Although this potential surge by eight-fold from this position could sound far-fetched to some, Fundstrat strategists recently offered a similar prediction.
ETH’s Fundamentals Raise A $10K Opportunity?
Ethereum’s native crypto has been on a tear in the past several months. After gaining about 500% in 2020, the second-largest digital asset entered the new year on a high note and went to paint a new all-time high of over $1,430.
Although the asset has retraced with a few hundred dollars, popular crypto commentator Alex Saunders is still a firm believer in ETH’s long-term potential. In fact, he considers an 8x increase to $10,000 as a realistic target.
Why I’m raising my $ETH target to $10k 🌏🖥️🌐
– ETH processing more Tx than BTC
– ETH2 locking ETH
– Staking yield 5-15%
– 4% issuance to 1% on ETH2 (QUARTERING)
– Enterprise Adoption
– ETH/BTC ratio pic.twitter.com/LyDbG8IBPn
— Alex Saunders 🇦🇺👨🔬 (@AlexSaundersAU) January 22, 2021
Saunders brought multiple reasons to support the somewhat optimistic forecast. Some of them highlighted the network’s growing utilization as the Ethereum blockchain is the underlying technology behind booming fields such as DeFi, NFT, DAOs, and more.
He added that the Ethereum network has far surpassed the BTC network in terms of transactions. On-chain data shows that the daily transactions on the world’s first blockchain are around 300,000, while Ethereum’s numbers have spiked well above one million.
Additionally, Saunders emphasized the long-anticipated ETH 2.0 launch. The upgrade, which will signify the network’s transition from the current proof-of-work consensus algorithm to proof-of-stake, has already started and should be completed in the next few years.
It will enable ETH stakers to generate a yield of about 5-15%. As such, investors would be more incentivized to lock their holdings, which would decrease the liquid supply, and could, in theory, increase the asset’s price.
Fundstrat Strategists Approve
An increase to $10,000 per coin for ETH means that the asset has to add another 700% to its value. While this sounds rather optimistic as of now, the cryptocurrency has proven itself capable of displaying similar increases.
Strategists representing Fundstrat Global Advisors also shared a similar long-term price prediction. CryptoPotato reported recently that lead analyst David Grinder touched on the same fundamentals as Saunders and described ETH as the “best risk-reward investment play in crypto.”
Although he warned that the ETH 2.0 network upgrade could lead to setbacks, Fundstrat’s remained bullish on the asset and said that it could reach $10,500 during this bull run.
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