The second largest cryptocurrency by market cap, Ethereum, is the crypto token in focus as this crypto analyst has eleven reasons why it is “programmed” to hit $10,000. Interestingly, one of the reasons he outlined happens to be one of the recent major talking points in the Ethereum ecosystem.
Why Ethereum Will “Easily” Hit $10,000
In a post on his X (formerly Twitter) platform, prominent crypto analyst Altcoin Daily mentioned Ethereum’s deflationary status as one of the reasons it will “easily” hit $10,000. This has been a major talking point even as the number of ETH burned continues to outpace the number of those issued.
This is undoubtedly a positive sign for the ecosystem, as it is common knowledge the effect that token burns can have on the value of the tokens still in circulation. Ethereum’s EIP-1559 protocol has meanwhile been credited for this current deflationary status as more ETH have had to be burned due to the spike in transaction fees.
This significant spike in transaction fees has always been a major downside to using Ethereum. However, things could change soon enough as transaction fees are expected to reduce significantly with the EIP4844 upgrade on the horizon. Altcoin Daily outlined that has another reason why ETH will definitely hit $10,000. More users could be onboarded following this.
Ethereum’s layer-2 networks also continue to thrive with network activity across these blockchains on the rise. The analyst believes that the success of these layer-2 networks will also influence ETH’s rise to $10,000. More layer-2 networks and dApps are expected to be built on top of the Ethereum network. This is another reason why $10,000 Ethereum is “programmed.”
ETH price continues to trade in a tight range | Source: ETHUSD on Tradingview.com
Everything About ETH Is Bullish
Bitcoinist reported in September how Ethereum had generated over $10 billion in revenue in 7 years. This was more impressive, considering that ETH attained this milestone faster than top technology firms. Ethereum’s profitability is another reason why Altcoin Daily believes that ETH hitting $10,000 won’t be a problem at all.
ETH had enjoyed an impressive ride in the last bull run, peaking at an all-time high of $4,891. Much credit was given to Ethereum’s DeFi landscape as the reason for the boom. For ETH’s rise to $10,000, the crypto analyst is also betting on that to be a major influence, as he noted that there are higher yields and higher staking ratios now.
In 2022, Ethereum transitioned from a proof-of-consensus mechanism to proof-of-stake. Certain key metrics have so far shown that the move has been disastrous for ETH. However, Altcoin Daily notes that the fact that Ethereum is more energy efficient is another bullish indicator for ETH’s journey to $10,000. The fact that there is no longer sell pressure from miners also has a role to play, in his opinion.
Finally, Altcoin Daily highlighted ETH being an “SEC safe commodity” as one of the factors that make the road to $10,000 very possible. The SEC is also expected to approve the pending Ethereum Spot ETFs once it approves the Bitcoin Spot ETFs. That is another event that he believes will influence Ethereum’s meteoric rise.
Featured image from WIRED, chart from Tradingview.com
