This crypto cycle is predicted to be a really bullish one, and there are more optimistic predictions popping up on a daily basis.
The latest one about Ethereum is also bullish and you can out more details below.
ETH can reach $20k
It’s been just revealed that the macroeconomics guru Raoul Pal said that ETH would be during to about $20k during this cycle.
The online publication the Daily Hodl notes that in a Macro Insiders article, the former Goldman Sachs exec said that all his models which also include Metcalfe’s Law which stated that the value of a network is directly correlated with the number of users is suggesting that a crypto asset’s value is based on the adoption.
Pal analyzed Ethereum and said that the market cap of ETH is highly correlated with the numbers of active addresses just like Bitcoin.
Pal also said that the correlation between the adoption and network value is not a coincidence at all.
He said that ETH’s price distribution versus the number of active addresses is mirroring Bitcoin’s exact performance at the same stage.
He said that ETH is six years younger compared to Bitcoin and the market participants will have to wait for the same network effects to kick in.
Pal is also looking at a key milestone when BTC and ETH achieved 1 million active addresses.
He also said that ETH’s growth is identical to the one of BTC four years apart.
He continued and addressed the growth trajectory in terms of price and adoption, and he believes the second-largest crypto asset will follow in the footsteps of Bitcoin.
“It is the SAME as Bitcoin, at the SAME point in its adoption cycle, with the exact SAME price and its market cap is rising faster… and suggests that its adoption cycle might be more dramatic too…” he said.
Pal explained that “ETH will outperform Bitcoin by almost 2x and is driven by the exact same mechanism – a great narrative – the platform for programmable money and, obviously, Metcalfe’s Law.”
At the moment of writing this article, ETH is trading in the green, and the digital asset is priced at $1,738.38.