The popular cryptocurrency analyst Coin Bureau explains why he sees Ethereum (ETH) reaching the $ 4,000 level by the end of July. . “Recently, the demand for the Ethereum chain has increased. You just need to take a look at the total number of active addresses on the network. As you can see, this is the highest point of more than 580 thousand addresses. ”In his opinion, the expansion of demand for the Ethereum network comes down to three main factors: decentralized finance (DeFi), stablecoins and NFTs. All three spaces that are growing at exponential rates, predominantly depend on Ethereum more than anything else, creating a huge need for the main smart contract platform. The trader also highlights the ever smaller offer of ETH for sale and the interesting relationship that develops between the amount of ETH that leaves the exchanges and that which is blocked in smart contracts.
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“That's right, it's almost as if they have a perfect inverse relationship. The money that flows from the exchanges tends to go towards smart contracts. ”
In addition to Ethereum's growing demand and ecosystem, Coin Bureau notes that the highly anticipated EIP 1159 update, which aims to make the Ethereum network more economical, is coming and could potentially ignite the rise of ETH to greater heights.
“Ethereum is really that exciting. I see it in the same way that those Internet pioneers saw TCP / IP in the 1990s. However, this time, we have the opportunity to invest in a protocol that has so much potential … Ethereum is well positioned to capture the value that is being built on top of it. And like 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 applications) and facilitate transactions… If Ethereum developers are able to effectively implement EIP 1559 in the London update, we can easily see ETH above $ 4,000 at the end of July."
See also: Bitcoin regulation focused on taxation is underway in the United States