The prediction about ETH is hovering in the market. On this, the prediction of the Co-founder of crypto exchange BitMex, Arthur Hayes, is that ETH will become a five-digit coin in USD terms before year-end.
The former BitMex seemed confident while expressing his opinion regarding the case, citing several reasons for his conviction of Ethereum beating odds to hit the $10,000 hallmark, a 3x gain on current prices.
“When the dust settles at year-end, I believe ETH will be trading north of $10,000,” he posted.
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The long-awaiting boom
Besides his prediction, Hayes believes that ETH would become a 4-digit coin in USD terms and will be acknowledged as the biggest boost for ETH’s price is the upcoming Merge’ which will completely morph the layer-one network into a Proof of Stake (PoS) validated blockchain.
Moreover, the analyst who was convinced about the case stated, “native rewards issued to validators in the form of ETH-based issuance and network fees for staking ETH in validator nodes.” He also believes the Pos network will surely attract a stack of attention from Proof of Work (POW) critics leaving Bitcoin in the cold.
“There is a significant amount of money managers that would like to allocate to crypto—by which they mean Bitcoin and or Ether—, but the Proof-of-Work consensus mechanism is considered energy wasteful,” the blog stated.
To Haynes, “sentiment will all change when ETH becomes ESG-friendly,” opening the network to hundreds of billions of dollars from investors who can “now safely invest.”
“As the year progresses and the merge comes and goes, I expect ETH to significantly outperform any L1 chain that constructed a narrative that it is faster and cheaper than Ethereum,” he added further.
ETH co-dependency to DApps ecosystem
In addition, he believes that Ether’s growth is connected to its DApps ecosystem. According to DefiLama, the total value locked in Ethereum based conventions is currently more than $140. It makes them the largest Defi ecosystem, while it’s an alarming bullish signal to Hayes.
He believes ETH is vastly different from bitcoin. ETH is a commodity that powers the world’s largest decentralized computer. Bitcoin is considered sacred as a store of value, placing a high gardened wall on investors who would like to splash their money into growth networks.
“ETH is a commodity used to power the computer, not a pure monetary instrument,” he said
“Ethereum has approximately 4,000 developers, which is 3x larger than the chain with the second-largest cohort of devs, Polkadot, which has the second-largest cohort of devs,” he reacted to Ethereum killers on the market.
He believed in a gradual fall in bitcoin with global markets.
“While I don’t believe we will revisit $3,000, max pain probably resides somewhere between $6,000 to $7,000 Bitcoin,” he said. Hayes recommends first filling your bitcoin bags and then stocking up on altcoins.
He also plans on reducing bitcoin holdings eventually to scoop up more Ethereum and Solana.
“My crypto portfolio at the beginning of 2023 was 50% Bitcoin and 50% Ether,” he wrote. “Therefore, my target allocation is 25% Bitcoin and 75% Ether and Solana to $200, a roughly 2x return. Would you be happy owning Solana? Surely yes.”
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