There have been all kinds of optimistic crypto predictions these days, and they continue despite the volatile crypto market.
Check out the latest predictions about Ethereum.
Altcoin Daily host Aaron Arnold recently said that he believes Ethereum (ETH) is poised for a massive move up amid exponentially strong fundamental growth.
In a new video, Arnold revealed that Ethereum is going through a supply shock courtesy of the EIP-1559 update.
Just in case you don’t know, this will permanently remove a certain amount of ETH from the circulating supply each time a transaction is processed.
“The Ethereum block space is getting used and because Ethereum changed its monetary policy, an insane amount of ETH is getting burnt, over 100,000 ETH due to NFTs platform, DEXs (decentralized exchanges), DeFi (decentralized finance), play-to-earn [games], stablecoins.”
Low annual inflation rate
Another reason for why Arnold is bullish on Ethereum is due to its low annual inflation rate.
“For the first time, Ethereum’s daily issuance was actually lower than that of Bitcoin. So understand this: ETH’s net inflation was 1.1% annualized and Bitcoin’s net inflation was 1.75% annualized.”
Arnold is also looking at the explosion of the total value locked (TVL) in decentralized finance (DeFi) platforms.
It’s been revealed that the amount of capital locked in DeFi puts Ethereum in a position to compete as one of the largest banks in the world.
“Ever since the beginning of the year, the total value locked in DeFi, which is primarily Ethereum, has gone exponential. On January 1st, the beginning of the year, total value locked was [a] modest $16 billion. Seemed like a lot at the time. Today, that number is now a staggering $85 billion. This would place ETH as the 20th largest bank in the world by market cap.”
Regarding the price of ETH at the moment of writing this article, ETH is trading in the red and the coin is priced at $3,190.