Venture capitalist and crypto veteran Spencer Noon is offering 10 signs that Ethereum is on its way to a $10,000 price tag.
In a new tweetstorm, Noon starts by noting that Ethereum by far generates the most revenue from network fees out of any blockchain, indicating massive demand for the world’s second-largest crypto by market cap.
Secondly, the former chief of crypto-focused investment fund DTC Capital points out that the Ethereum network settles 12 times more value than payments giant PayPal and almost twice as much as Bitcoin.
“Ethereum settles $30.5 billion worth of value per day, far more than Bitcoin and every other blockchain – to put this into context, PayPal settles ~$2.5 billion daily.”
Noon’s third sign of Ethereum’s journey to $10,000 is the fact that active wallets are on a steady climb upwards, breaking all-time highs (ATH) almost on a weekly basis.
“Ethereum has 625,000 daily active addresses (90-day MA) – a figure that continues to climb and now sits comfortably at ATHs.”
Sign number four is that the decentralized finance (DeFi) space, which heavily relies on the Ethereum network, now has over $65 billion worth of value locked up, indicating that Ethereum is “institutional-grade financial technology.”
Noon’s fifth sign of Ethereum’s continued growth is the increasing supply of stablecoins living on the network.
“Ethereum has $50 billion in outstanding stablecoin supply, with 500,000 daily unique senders and $20 billion in value being exchanged per day – a sign of explosive product-market fit.”
The crypto investor says that another important indicator for Ethereum is that decentralized exchanges (DEXs) existing on the Ethereum network are starting to rival traditional centralized exchanges in terms of volume.
The seventh indicator is that Bitcoin-backed Ethereum tokens like Wrapped Bitcoin (WBTC) and pBTC are also growing in popularity at a rapid pace. Noon says the phenomenon is “a sign that ETH is becoming an economic vacuum for all assets, including Bitcoin.”
Sign number eight for Noon is the red-hot non-fungible tokens (NFTs) sector exploding on the Ethereum network. NFTs are blockchain-based tokens with properties that make them verifiably unique. The NFT space has exploded in recent months, and most of the projects rely on the Ethereum blockchain.
“Sales of NFTs on Ethereum have now surpassed ~$600 million, with 13 pieces selling for $1 million+ each – a sign that new categories of applications are also emerging on ETH.”
The ninth sign that ETH is en route to $10,000, according to Noon, has to do with the Ethereum-based Polygon network. Polygon (MATIC) allows developers to build interoperable blockchains on top of the Ethereum network, and Noon notes just how quickly it’s taking off.
“Polygon is currently doing ~1 million daily transactions and has onboarded numerous DeFi blue chip projects, including Aave, which has >$2 billion in liquidity there – disproving the ‘Ethereum can’t scale’ narrative.”
Noon says the 10th sign that Ethereum is about to shatter $10,000 is the upcoming EIP 1559 update, which overhauls ETH’s fee market. The investor says the highly-anticipated update is bullish for ETH on multiple levels.
“Finally, in less than 3 months(!), the EIP-1559 upgrade will be activated, likely resulting in hundreds of millions worth of ETH being burned each year – this is a massive catalyst for ETH value capture and its overall fundamental investment case.”