The price of the second-largest cryptocurrency by market size has received a lot of positive forecasts this year. Analysts predict that the digital asset will be worth more than $10,000 by the end of the year, based on current patterns. Lark Davis, another crypto expert, has now echoed what his colleagues have been saying about the altcoin.
Ethereum’s break above $10,000, according to Lark, is unavoidable and only a matter of time. Speculating that the digital asset will increase by 190 percent will cause it to break through this price barrier. On his YouTube channel, which has over 433K subscribers, the crypto analyst sets out his research. Lark states in the video that this pricing is already “programmed in.”
Lark begins his research by highlighting Ethereum’s finite supply. More specifically, Ethereum’s exchange supply is minimal, so there isn’t a lot of ETH sitting around waiting to be traded when the price rises. The recent volume of ETH taken from exchanges demonstrates this. Last week, 1.2 billion worth of Ethereum was removed from centralised exchanges in the space of 24 hours, setting a new high for the cryptocurrency.
According to the expert, the decrease in Ethereum’s available supply is causing a supply-side crisis. Bulls have amassed some of their largest bags to date and are unlikely to shed them anytime soon. Waiting for the price of the asset they invested to rise 5-10X before dumping their bags is a common practise. As a result of these long-term holdings, Ethereum is experiencing a supply shock.
When comparing supply to last year, Lark observes that, with the exception of a few spikes, the exchange supply continues to fall drastically. As people shift their coins off of exchanges to utilise for other purposes such as staking, the supply outside of exchanges expands. When comparing the charts and movement, Lark notices that when the supply of Ethereum decreases, the price of Ethereum rises. This tendency is comparable to Ethereum’s present trajectory. Exchange supply has decreased, putting the market on the verge of another price discovery for the digital asset if history repeats itself.
Lark Davis, a crypto expert, brings the ETH burn to the foreground. Lark estimates that roughly 1 million ETH will be burned by the end of the year, based on the fact that over 300,000 ETH was destroyed in just six weeks following the upgrade, totaling over $1.1 billion. This will exacerbate the supply shock that is currently projected. The supply of ETH will decline as fewer coins are released into circulation.
This rate of burn is referred to by Lark as “rocket fuel for price appreciation.” This amount of Ethereum burned backs up Lark’s projection of a 190 percent spike in the price of Ethereum, which would push the altcoin above the $10,000 mark.
Finally, Lark mentions that Ethereum is gaining traction among institutional investors. Cathie Wood, for example, revealed that her firm, ARK Invest, has grown more confident in the asset, adding that they will split their crypto bags into 40% ETH and 60% BTC. This institutional investor interest will be the driving force behind Ethereum’s ascent to $10,000.