Crypto investor and entrepreneur Ryan Sean Adams believes Ethereum is undervalued. In his opinion, the second largest cryptocurrency by capitalization is awaiting a rally and there are several good reasons for this. Their list he shared with your subscribers.
Ryan Sean Adams drew attention to his colleagues’ suggestions that ETH has probably exhausted its growth potential with an updated annual high of $2.2 thousand. The trader believes that this is not the case.
Here are a few features of Ethereum that, according to Ryan Sean Adams, indicate prospects for further growth of ETH:
1. Ethereum is a successful project that generates profit. The ETH profitability indicator is about $2.7 billion per year. According to Adams’ observations, such results allow Ethereum to break away from its competitors. At the same time, the project is close in terms of price-profit ratio to many large companies, such as Amazon and Zoom.
2. The number of second-layer solutions for Ethereum (L2) has increased on the market. The activity of their users can also increase the demand for ETH, which will push the price of the cryptocurrency up.
3. Ethereum developers have set a course for deflation. A decrease in the supply of ETH may also support the growth of the coin’s price.
Changes in ETH emission. Source: ycharts
4. Ethereum has secured its status as a financial instrument for saving savings. The effectiveness of investments in ETH can attract new buyers and support the growth of the cryptocurrency rate.
5. ETH investors have access to passive income – staking. As of the time of writing, there are 28,306,544 Ethereum locked in staking. The yield on them is 3.8%. The interest of market participants in ETH staking reduces the likelihood of sales and increases the attractiveness of the coin as a tool for organizing passive income.
Ethereum staking statistics. Source: ETH official website
6. The market is preparing for the launch of a spot exchange traded fund (ETF) on Ethereum. An application to create the tool was submitted by Wall Street giant BlackRock. If the instrument is approved, the company will begin to purchase ETH for the fund, which can also support the growth of the coin’s rate.
7. Moving to PoS made Ethereum more environmentally friendly, which means it is more attractive for large investors who are trying to invest in environmental projects.
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