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Cryptocurrency trader and YouTube influencer Lark Davis said Ethereum (ETH) is on the verge of a 190% rally on its way to a five-digit price.
In a new video, Davis tells his 431,000 YouTube subscribers that the second largest crypto asset by market cap is preparing to appreciate above $ 10,000 based on key fundamentals.
Davis says one of the reasons Ethereum is expected to more than double is its drop in supply in trade.
According to Davis, the offering of the leading smart contract platform in the exchanges has seen a strong downward trend over the past year as holders lock their Ethereum into Decentralized Finance (DeFi) protocols or use their ETH to buy non-fungible tokens (NFT).
With the supply mechanisms working as they are, it is only a matter of time before the Ethereum supply crisis ends up driving the price up in a serious way.
Davis also cites a Tweeter by the blockchain intelligence platform IntoTheBlock, which says the net amount of Ethereum coming out of crypto exchanges recently hit a new high.
“The net amount of Ethereum leaving trading has just hit a new record. Yesterday over $ 1.2 billion worth of Ethereum left centralized trading. This is a staggering number.”
The crypto-trader adds that when Ethereum, worth over $ 1 billion, previously left centralized exchanges, the price of the second-largest crypto rose by double-digit percentage points in about four weeks.
“And what is interesting, as IntoTheBlock points out, the last time a billion dollars or more of Ethereum left centralized exchanges, Ethereum rose 60% in 30 days.”
Davis also says cites research from blockchain analytics firm Glassnode, which shows that a huge chunk of Ethereum’s supply has not budged in the past 90 days.
“87% of Ethereum’s supply has not been transferred to the chain for three months or more. 87% of the offer! This is madness”
The crypto trader says the lack of movement is an indication that Ethereum holders are “waiting for higher prices,” driven, among other things, by the burning of Ethereum transaction fees.
“People are hanging on to higher prices, they are not selling below the previous record. They know a new all-time record is approaching. They know the price discovery is approaching. They are watching and seeing what is going on economically with Ethereum right now. They see how much, for example, Ethereum is being burned right now …
We have now lost $ 1.1 billion of Ethereum – 309,500 Ethereum at the time of recording this video.
Davis also says the proliferation of scaling solutions, known as Layer 2 protocols, is also bullish for the second largest crypto asset, as they drive demand for Ethereum.
“We’re also seeing layers 2 of Ethereum taking off now. To use Ethereum layer-2, you need to have Ethereum. Clear and simple. You must have ETH to pay gas charges on Ethereum layer-2.
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