Saturday, December 4

Former Goldman Sachs Manager Says Ethereum Could Boost Up 300% This Year

Raoul Pal, macro investor and CEO of Real Vision, presented a comparison between the current chart of Ethereum (ETH) against Bitcoin (BTC) in 2017. According to him, Ether may soon witness a 300% rally.

This could not only mean a huge decrease in Bitcoin dominance, but also cause Ethereum to surpass Bitcoin for the first time in market capitalization, should it remain static or fall.

Among the reasons for the great appreciation of Ethereum this year are its burning of Ethers, the expansion of the DeFi and gaming sectors, as well as small advances in the migration to Proof-of-Stake (PoS).

“Ethereum can pass Bitcoin”

Raoul Pal’s analysis shows the current Ethereum graph superimposed on Bitcoin in 2017, when it was in the range of $7,892. In this way, the investor believes that the ETH can rise up to 3 times, as bitcoin did in 2017, reaching almost 13,000 dollars per unit.

“I don’t expect perfection, but with all the other analysis I’ve done, something like a 100% to 300% rally is highly likely by the end of the year. Nothing is certain.”

As Ethereum has a market capitalization of $493 billion, a 300% increase could make it overtake Bitcoin if it stays at $60,000, with BRL 1.11 trillion in value. of total market.

Even a 100% appreciation, the most conservative hypothesis put forward by Raoul, would cause Ethereum to considerably diminish the current dominance of Bitcoin.

There’s room for that, without threatening Bitcoin. After all, Ether is still 55% below its historic high in the ETH/BTC pair. This peak was marked in June 2017, when trading reached 0.156 BTC for 1 ETH, today it is around 0.07.

Ethers burning has influenced the price

Since the introduction of EIP-1559 — whose main purpose is to burn part of the transfer fees — Ethereum has already burned more than 933 ETH, equivalent to 22 billion reais in the current conversion.

In this way, in addition to the holders’ Ethers not being devalued due to inflation — generation of new currencies — there is also a supply shock, previously made by miners. At times, the network even burned more tokens than it printed.

Among other points that are being important for Ethereum at the moment is its wide range of applications running on its protocol, especially from the DeFi and gaming sectors, as well as the long-awaited transition to Proof-of-Stake.

Leave a Reply

Your email address will not be published. Required fields are marked *