The popular crypto trader and analyst at the Coin Bureau has made his case for why he believes Ethereum (ETH) will break through the $ 4,000 level by the end of July.
In a new video, a trader known as Guy noted the massive rise in active addresses on the Ethereum network.
Recently, the load on the Ethereum network has skyrocketed. You just need to look at the total number of active addresses on the network. As you can see, this is a record of over 580,000 addresses.
According to him, the growing demand for the Ethereum network is due to three main factors: decentralized financing (DeFi), stablecoins and NFTs.
The trader also highlights the shrinking Ethereum supply and an interesting relationship between the amount of ETH leaving exchanges and the amount locked inside smart contracts.
That’s right, they have an almost perfect backward relationship. Money leaving exchanges is usually directed towards smart contracts.
In addition to the growing demand and the Ethereum ecosystem, the Coin Bureau notes that the EIP 1159 update will make the Ethereum network more cost-effective and could trigger a spike in ETH.
Ethereum is really impressive. I look at this in the same way as the pioneers of the Internet on TCP / IP in the 1990s. However, this time we have the opportunity to invest in a protocol that has such great potential … Ethereum is well placed to obtain the value that is created on its basis. And as the fuel that powers the grid, ETH is becoming an incredibly rare asset. The more the ecosystem grows, the higher the demand for ETH to support dApps (decentralized applications) and simplify transactions. If Ethereum developers can implement EIP 1559 in the London update, then by the end of July we could see ETH surpass $ 4,000.