Lark Davis: Ethereum could hit $19,000 because of this 5 reasons – Crypto News Flash

Lark Davis: Ethereum could hit $19,000 because of this 5 reasons

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  • Lark Davis expects the ETH price to hit around $19,000 after the Ethereum ETF.
  • Ethereum daily transactions on the network have hit a new ATH of 1.36 million. 

Ethreum’s price recently hit a new all-time high of $4,313 with a market cap of half a billion dollars. According to Lark Davis, a crypto analyst and influencer, five important factors provide technical support for the asset to extend its rally by 473 percent.

Transactions hit new ATH

The Ethereum network is currently pulling numbers with daily ETH transactions hitting a new all-time high of 1.36 million. This breaks the 2017 daily transaction record of 1.33 million on the network. According to Davis, this shows a growing demand on the ETH network. He also mentioned that the ETH active wallet address is on a new ATH surpassing the 2017 record. As more users troop onto the network, the higher the ETH price goes as users would need to have a unit of the asset to use the network. Davis, however, disclosed that the network has a big downside that needs to be upgraded. The average fee for sending an ERC-20 token is $27, and the price for swapping on Uniswap is $250 which is extremely high. 

Though I’m bullish on ETH, I’m very honest about the fee situation. We can partially blame the new wave of Ponzi coins, but we can’t necessarily blame them as they are the temporal course, but realistically, the Ethereum network needs an upgrade. 

Ethereum hype

Davis also pointed out that Ethereum is backed by the rising attention of investors probably because of its price. Its attention also stems from the value it provides. Ethereum has the best decentralized applications, and so people are highly interested and believe in its future.

 

Buyers step up

Ethereum has currently overtaken Bitcoin in spot volume (people buying ETH directly from their spot wallet). Davis stated that though Bitcoin is popular, ETH is the real deal. 

The difference between Ethereum and Bitcoin in spot volume went negative this week for the first time. A lot of this was not just driven by retail interest, but the institutional interest of its ecosystem, staking reward, risk-reward, and deflationary mechanism.

The EIP-1559 and many other projects in the pipeline can further make Ethereum better.

Triple halving

In his analysis, Davis mentioned that the triple halving set to take place in a few months will be a catalyst to send the price to the moon. Ethereum will have its average annual issuance rate lower than Bitcoin in an event that will reduce the 4.5 percent issuance to about 0.5 percent in a 90 percent reduction. This will be equivalent to three Bitcoin havings. 

Ethereum ETF

Bitcoin ETF has become very popular in the crypto community. Unfortunately, the Ethereum ETF does not get much attention. Canadian authorities have now approved Bitcoin ETF, meaning there is a possibility that Ethereum could also hit the ground running after VanEck filed for an ETF.

Davies explained that the gold ETF caused a 473 percent price surge to send its market cap from two trillion to ten trillion in eight years. A similar impact based on the same percentage will imply $19,970 for ETH and $269,000 for Bitcoin.

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This article is for informational purposes only and does not constitute investment advice. Read full disclaimer

John Kumi

John Kumi

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John is a seasoned cryptocurrency and blockchain writer and researcher, boasting an extensive track record of years immersed in the ever-evolving digital frontier. With a profound interest in the dynamic landscape of emerging startups, tokens, and the intricate interplay of demand and supply within the crypto realm, John brings a wealth of knowledge to the table. His academic background is marked by a Bachelor's degree in Geography and Economics, a unique blend that has equipped him with a multifaceted perspective. This diverse educational foundation allows John to dissect the geographical and economic factors influencing the cryptocurrency market, offering insights that go beyond the surface. John's dedication to the crypto and blockchain space is not merely professional but also personal, as he possesses a genuine passion for the technologies that underpin this revolutionary industry. With his astute research skills and commitment to staying at the forefront of industry trends, John is a trusted voice in the world of cryptocurrencies, helping readers navigate the complex and rapidly changing terrain of digital assets and blockchain innovation. John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space.
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