Crypto venture capitalist Spencer Noon predicts an Ethereum rally that will see the asset well above its new all-time high.
The general partner of the crypto venture capitalist firm Variant says the number of users and the amount of capital invested in decentralized finance (DeFi), which Noon calls the “biggest use case” of Ethereum, is a bullish sign.
“There are now more than 1.25 million DeFi users, a number that is continuing its parabolic upward trend – a sign that the largest Ethereum use case is on its way to adapting to the product market.
There is now more than $ 25 billion locked in DeFi. 21 different projects have more than $ 100 million in TVL (Total Value Locked) – a sign that the ecosystem is rapidly maturing and becoming institutional.
More than $ 20 billion has been deposited into loan logs, with outstanding loans amounting to nearly $ 4.5 billion – a sign that DeFi lending is becoming increasingly battle tested. “
Noon points out that the rapid growth in monthly volume on decentralized exchanges (DEX) has reached levels now in line with the centralized financial sector (CeFi).
“Monthly DEX volume is more than $ 30 billion, an increase of about 50 times over last year – a sector where DeFi competes with CeFi.”
Noon lists some of the other reasons he’s bullish on the number one smart contract platform, including the increasing number of ETH exit exchanges, the growing number of daily active ETH addresses, and the untapped capital waiting in the pockets of major investors who have not yet entered the decentralized game.
“ETH is steadily flowing out of the exchanges, including more than 530,000 in one day last week (valued at ~ $ 740 million) – a tell-tale sign of accumulation.
Ethereum has nearly 550,000 active addresses per day (90-day MA) – a number that the YTD has doubled and now sits comfortably at ATHs too.
The number of large ETH transactions (> 100,000 USD) is seven times lower than during the ATHs 2018 – a sign that whales and institutions have not yet come into play. “
According to CoinMarketCap, Ethereum is currently down 4.25% from the week and has done well compared to Bitcoin which is down 10.19% from the week.
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