In a recent blog post, Arthur Hayes, co-founder of BitMEX, expressed his belief that the use of artificial intelligence (AI) technology could greatly benefit the price of Ethereum (ETH).
He envisions a future where AI applications create decentralized autonomous organizations (DAOs) to facilitate smart contracts, and he sees Ethereum as the ideal platform for this scenario due to its widespread use as a decentralized virtual machine.
Tokens built on Ethereum fate revealed
Hayes predicts that tokens issued by these AI DAOs will be traded on decentralized exchanges (DEXs), particularly those built on top of Ethereum.
A decentralized exchange (DEX) is ideal for facilitating the trading of various types of tokens, including equity, debt, utility, participation, and more, that are issued by DAOs powered by artificial intelligence.
As DAOs raise funds and create tokens on the blockchain, a wide range of new DAO tokens will become available for trading on DEXs.
With DAOs gaining more economic value than traditional companies, DEXs are expected to surpass centralized exchanges (CEXs) in terms of trading volumes. It is believed that the Ethereum-hosted DEXs will drive the majority of on-chain activity in the future.
According to the founder of BitMEX, if his predictions come true, Ethereum’s value could rise by up to 1,556%. This would mean that its current price of $1,875 would soar to $31,063 if DEX trading volumes reached 20% of traditional stock exchange volumes recorded in 2022.
Hayes believes that Ethereum could even reach a price in the five-figure range within the next five years.
“Given the market is forward-looking, I want to guestimate the percentage that will be reached 5 years into the future. I am not concerned about getting this number exactly right. I want to be directionally correct and profit as the narrative shifts from “won’t happen” to “might happen”.
Make sure to check out the original article that has been shared by the Daily Hodl.
