Noon disclosed his outlook on Twitter, pointing to followers to anticipate the aggregate value of BTC held in decentralized finance (DeFi) covenants to keep increasing.
“There are now 131,075 BTC (~$1.5 billion) on Ethereum. That is 0.624% of all bitcoins in existence. I predict we’ll 20x this by the end of 2021.”
Noon’s daring forecast has come against the backdrop of DeFi pulse’s info that investors have exchanged a historically high 141,683 BTC valued about $1.50 billion into ERC20 tokens.
Cryptocurrency traders are exchanging BTC for Ethereum based tokens that symbolize BTC, a step that permits them to primarily utilize their Bitcoin to take part in DeFi and capitalize on decentralized lending covenants, synthetic derivatives and exchanges.
There are now 131,075 #BTC (~$1.5 billion) on Ethereum
That is 0.624% of all bitcoins in existence
I predict we’ll 20x this by the end of 2021 pic.twitter.com/B4yYbKa2Sa
— Spencer Noon (@spencernoon) October 10, 2020
Even though Noon expects that a lot of Bitcoin will be transferred to Ethereum chain, he and several professionals in the domain anticipate Bitcoin holders to carry on with hodling.
Messari founder and CEO Ryan Selkis is one such crypto professional who has given his opinion on the rate at which Bitcoin will be diluted by holders:
I don’t think people appreciate how high the ask is for a big chunk of the bitcoin supply.
Most of us have an “I’m never selling this” amount of bitcoin in case the dollar collapses.
I’d say 30-40% of BTC doesn’t move until $100k++.
— Ryan Selkis (@twobitidiot) October 10, 2020
Noon replied to Selkis’ view by endorsing the forecast made by the chief of Messari. While accepting the fact that a lot more Bitcoin will be sent to DeFi platforms, a considerable quantity of Bitcoin will remain unchanged in the months ahead.
At first glance this claim might seem outrageous — it’s not. The 2017 bull market saw roughly $BTC‘s price rise from sub-$1k to ~$20k. During that time, only 20% of the supply moved, which is a decent proxy for selling activity. It’s reasonable to expect similar next bull run. https://t.co/Cb3GKdrv8z pic.twitter.com/VIk0Mmph6u
— Spencer Noon (@spencernoon) October 10, 2020