• Above $10,000, Ethereum is already ‘programmed into the matrix.’ Lark Davis, a cryptocurrency trader, says

  • Lark Davis, a cryptocurrency trader and YouTube influencer, believes Ethereum (ETH) is poised for a 190 percent rally on its way to a five-figure price.

    Davis tells his 431,000 YouTube subscribers in a new video that the second-largest crypto asset by market cap is poised to rise above $10,000 due to key fundamental factors.

    According to Davis, one of the reasons Ethereum’s price is expected to more than double is a decrease in supply on exchanges.

    According to Davis, the supply of the leading smart contract platform in exchanges has been declining over the last year as holders either lock their Ethereum in DeFi protocols or use their ETH to buy non-fungible tokens (NFTs).

    With the supply mechanics in place, it’s only a matter of time before the Ethereum supply crisis drives up the price significantly.”

    Davis also cites a tweet from blockchain intelligence platform IntoTheBlock, which claims that the net amount of Ethereum leaving crypto exchanges recently hit a new high.

    “The net amount of Ethereum leaving exchanges has just reached a new high. Over $1.2 billion in Ethereum was removed from centralized exchanges yesterday. That is a mind-boggling figure.”

    According to the crypto trader, when Ethereum worth over a billion dollars previously left centralized exchanges, the price of the second-largest cryptocurrency rose by double digit percentage points within four weeks.

    “As IntoTheBlock points out, the last time a billion dollars or more of Ethereum left centralized exchanges, Ethereum increased by 60% within 30 days.”

    Davis also cites research from blockchain analytics firm Glassnode, which shows that a significant portion of Ethereum’s supply has not moved in the last 90 days.

    “For three months or longer, 87 percent of Ethereum supply has not moved on-chain. 87 percent of the available supply! That’s insane.”

    According to the crypto trader, the lack of movement indicates that Ethereum holders are “waiting for higher prices,” which is being driven by, among other things, the burning of Ethereum transaction fees.

    “People are holding out for higher prices, not selling below the previous all-time high. They are aware that a new all-time high is on the way. They are aware that price discovery is imminent. They’re keeping an eye on what’s going on economically with Ethereum right now. They’re looking at how much Ethereum, for example, is being burned right now…

    We have now burned through $1.1 billion in Ethereum – 309,500 Ethereum at the time of recording this video.”

    Davis also believes that the proliferation of scaling solutions, known as layer-2 protocols, is positive for the second-largest crypto asset because it increases demand for Ethereum.

    “We’re also seeing a surge in Ethereum layer-2s right now. To use Ethereum layer-2, you must first have Ethereum. Simple as that. To pay the gas fees on Ethereum layer-2, you must have ETH.”

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