A professional and popular crypto trader Lark Davis said that Ether is set to rise by over 500% from its current position. He also believes that ETH’s market cap will surpass one trillion dollars in the near future.
In his recent video, Davis cited the reason for the potential rise in the value of ETH. The main driver being the increase in DeFi and Non-fungible tokens (NFTs) built on the Ethereum network. Thus, the Ethereum blockchain is now the settlement layer of the cryptoverse due to NFTs.
In addition, Davis talked about the rise in institutional demand for ETH as another reason for the likely increase in its value and market cap. He cited Cathy Wood of Ark Investments’ interests in Ethereum as a great example.
Specifically, Cathy Wood’s Ark Investment purchased 639,000 shares of Grayscale’s Ethereum Trust, showing its interest in Ethereum.
Lark Davis and Cathy Wood are not the only people to put their trust in Ethereum. Toddy Morley, a co-founder and former executive of investment powerhouse Guggenheim Partners, said that ETH has more utility than bitcoin.
Morley views the Ethereum smart contract as offering more value to the blockchain industry than bitcoin. Speaking to Bloomberg TV, he said, “Bitcoin is “a thing,” but “Ethereum to me has a much higher utility through smart contracts.”
— Bloomberg Crypto (@crypto) May 25, 2021
His analysis went beyond the bitcoin and ETH comparison to the utility of the blockchain business. For him, an industry which has no plan to digitalise will flop one day. According to him, individuals and businesses are developing many dApps on the Ethereum blockchain in order to create value for their communities.
Despite Morley’s admission about the utility of Ethereum blockchain, his company, Overline Network, formerly called Block Collider, an interoperability protocol, aims to connect blockchains. However, the company’s greatest focus is to link the bitcoin chain with decentralized finance protocols.
Commenting on the recent crypto crash, Morley said that these swings take place because the cryptocurrency market is comparatively young and illiquid.
The analysis of David and Morley came up as the crypto market shows signs of consolidation. For instance, after slumping to around $30 000, bitcoin has recovered to over $40 000. On the other hand, Ether (ETH) has gained over 36% as it currently trades at $2.813.
Apart from ETH and BTC, the prices of other coins such as Binance coin, Cardano and Dogecoin, have already appreciated by 44%, 35% and 23% respectively.