Ethereum recently rose to an ATH of over $ 4,440. And at press time, ETH was still hovering around the $ 4,300 levels. While these are considered by many to be strong levels, analyst Lark Davis argued that Ethereum is vastly undervalued in his latest podcast .
Five events to watch out for
Speaking in the context of the development of Ethereum use cases on social media platforms, Davis made some key observations. Not so long ago Reddit had launched its community tokens on the Ethereum platform.
Recently, Reddit hinted at an NFT release. Davis noted that his community of "430 million monthly active users" is now likely to use the Ethereum platform for launch. Similarly, I expected that even Twitter would have to "enable Ethereum-based verification" for its NFT platform.
Also, let's not forget that TikTok, with billions of users, has already launched its creator-led NFT collection on the second-generation blockchain. Another similar ad may even come from Facebook, Davis hoped. The platform with “2.8 billion monthly active users” could take a “multi-chain” approach for its upcoming metaverse plans.
However, Facebook's NFT plans could boost Ethereum again. Also, the wide adoption of Facebook's Novi wallet in the future is also something you need to focus on, from Ethereum's point of view .
From NFT to ETF
Moving on to what has been considered an industry-wide win, is the launch of focused Bitcoin ETFs. Naturally, Davis and other investors are hoping that an ETH ETF will be next. Notably, Canada has allowed Bitcoin and Ethereum ETFs. Davis pointed out that it could be the next thing in the US market.
Institutional interest
According to the CoinShares weekly report, Ethereum posted exits for the third week in a row totaling $ 1.4 million as of October 25. Despite the profit-taking, institutional interest in ETH is something that remains strong.
Previously, JP Morgan analysts had pointed out that institutions even prefer Ethereum over Bitcoin. Davis also explained that a "range of different players, from public companies to private funds, family offices, etc." see Ethereum development as an invertible asset.
Furthermore, with increasing demand, the available supply of Ethereum on core exchanges has been down by 18%, which is close to 4 million ETH. And this trend has occurred in the last five months.
Also, a report pointed out that Ethereum's current burning rate after the London hard fork is around 5 ETH / min. With over 700,000 tokens burned, Ethereum's POS merger is also not far from its Altair upgrade. With the reduction in mining rewards, Davis estimated,
"Ethereum will have a negative annual supply rate of around minus 2%."
Having said that, Goldman Sachs' Bernhard Rzymelka recently predicted that the price of ETH would double by the end of the year.
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