“This week we had the second-biggest Ethereum outflow from centralized exchanges with 235,000 Ethereum withdrawn in a single hour. When the price went down, buyers stepped up big time…
On-exchange balances for Ethereum just reached a new low. Ethereum is in accumulation mode – whales are still buying heavily.
Ethereum is going to be a five-digit asset not just like $10,001, likely much higher than that.”
Davis believes that another main factor that will propel Ethereum’s market cap is the rising interest in non-fungible tokens (NFTs).
“The undisputed home of NFTs is Ethereum. Every major NFT market is an Ethereum market. Sure, other chains are going to do NFTs, I welcome that, I’m excited about that as well. But as so often happens, all the liquidity and all the most valuable stuff, it’s on Ethereum.”
Davis further states that Ethereum will also gain from the rising adoption of decentralized finance (DeFi), which is the ‘biggest thing happening in cryptocurrencies.’
“The biggest and the best protocols with the deepest liquidity are building on Ethereum, they live on Ethereum. The potential addressable market for decentralized lending and borrowing and exchanging and other more exotic financial services…massive…absolutely massive. We are literally talking about the future of finance here. How big do you think the market cap of Ethereum will be when we finally hit one billion users later this decade?”