Last Friday (July 2), popular New Zealand-based crypto analyst Lark Davis (@TheCryptoLark on Twitter) explained why he is “mega bullish” on Ethereum (ETH) at the moment.
Ethereum Flipping Bitcoin in Terms of Daily Active Addresses
Davis pointed out that as of June 27, Ethereum had more active addresses than Bitcoin (for only the third time since 1 January 2017). Davis is not surprised because there is “so much more you can do” with Ethereum compared to Bitcoin (which is mostly just about HODLing it while you wait for the price to go up).
Davis then mentioned that when it comes to number of users, not only Ethereum is doing well, but so is Polygon.
Balancer Launches on Polygon
On July 2, one more popular Ethereum-powered app launched on Polygon. Davis says that this demonstrates the demand for Ethereum-powered DeFi apps that do not require paying “crushing” Ethereum transaction fees.
Twitter Using Ethereum for Its First Ever NFT Release
On June 30, Twitter announced that it was going to give away 140 non-fungible tokens (NFTs) via Ethereum-powered marketplace Rarible despite the fact that Twitter CEO Jack Dorsey is a Bitcoin maximalist.
Davis finds it interesting that two of the most popular social media platforms — Reddit and Twitter — are now using Ethereum.
SkyBridge Capital Planning To File Proposal for an Ethereum ETF
Davis says that if Anthony Scaramucci’s SkyBrige Capital goes ahead with its plan, this would be the second proposal for an Ethereum ETF to be submitted to the U.S. Securities and Exchange Commission (SEC).
Davis believes that just like Canada has approved several BTC and ETH ETFs, the U.S. SEC will — soon or later — do the same, and that even if the SEC just approves one or two ETH ETFs this year, that would unleash a huge amount of liquidity into the Ethereum market, which should be highly bullish for the Etheruem price.
Ethereum 2.0’s Staking Contract
According to The Block’s Data Dashboard, the amount of ETH staked in the Ethereum 2.0 staking contract went over the six million ETH mark on June 30. Data from Etherscan indicates that currently (as of 10:52 UTC on July 6), 6,117,218 ETH (worth approximately $13.88 billion) has been staked in this contract.
Davis says that that this is bullish because it reduces the amount of ETH that is available for investors who want to buy it.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.