Crypto trader and influencer Lark Davis says four catalysts could ignite a major Ethereum rally in the near future.
In a new video, Davis explains why he believes ETH is set to take off, first noting that last month Ethereum had about 200,000 more daily active addresses than Bitcoin. The popular crypto analyst also highlights the slow but steady uptrend in the number of Ethereum’s daily active addresses.
Davis says the surging on-chain activity can be attributed to Ethereum having a large number of use cases relative to other crypto assets.
“With Ethereum, there’s just so much more you can be doing, right? You can be doing decentralized finance (DeFi), buying non-fungible tokens (NFTs), or sending stablecoins or whatever else you might want to do on Ethereum.”
The analyst also points out that Twitter is now using the Ethereum network to mint NFTs, even though the company’s CEO Jack Dorsey has long been known as a Bitcoin maximalist.
“This is really, really big. Twitter CEO Jack Dorsey, famous hardcore Bitcoin maximalist using Ethereum. Twitter has given away 140 free NFTs… What this indicates is Twitter is using Ethereum. So in spite of all of the rhetoric from Jack Dorsey about Bitcoin being the best thing in the universe, here is the reality: Twitter still has not bought Bitcoin for their company reserves. But Twitter is using Ethereum.”
Another catalyst that may spark a serious Ethereum run, says Davis, is the approval of an Ethereum exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
“We do have a new Ethereum ETF application that has come out. [This] could unleash a wave of incredible liquidity into these markets. If the SEC were to approve just one or two Ethereum ETFs this year, that would immediately mean that all these traditional investors and all these big funds who are just never going to buy Bitcoin and Ethereum off the open market are now going to have the ability to easily put a BTC ETF or ETH ETF into their retirement accounts. That’s a big deal.”
Finally, Davis notes that nearly six million Ethereum has been staked on the Ethereum 2.0 deposit contract, meaning that a huge chunk of the ETH supply is locked up.
“Ethereum 2.0 approaching six million staked Ethereum. That is a lot of belief in the ETH 2.0 network… You have to remember when you lock your Ethereum up in the staking contract, that’s a one-way trip. [It] goes in, doesn’t come back out.”