Ethereum’s price action remains bearish in tandem with the broader crypto market. ETH tumbled below the key level of $2000 yesterday causing panic among holders. However, the price has now risen to $2,010. The next resistance to hit is at $2020.
Although the price momentum is negative, Ethereum’s network development, fundamentals, and institutional adoption stand strong.
Long-time Ethereum proponent, analyst/trader Lark Davis recently made a long-term bullish case for Eth in a recent video.
Davis says Ethereum is scheduled to undergo a massive supply shock over the time starting from August 4th. He lists out the various reasons that will lead Eth to became more deflationary and valuable.
London Hardfork set to go live on Aug 4
First on his list is the news of the much-anticipated launch on London Hardfork on mainnet. The hardfork has the most talked about EIP 1559, this update is set to be a “perpetual stock buyback mechanism”.
Although it did get delayed from the scheduled date, it is set to happen and Davis terms it as unlocking of Etheruem’s scarcity engine.
Ethereum 2.0 has a whopping 195,878 validators running the network with a total of 6.268 Million Eth deposited.
He states another incredible fact, i.e Currently, more ethereum every single day is flowing into the Eth 2.0 staking contract than is currently being mined.
This shows that people are piling money into Etheruem and staking it into the contract which is a very bullish event for the network.
Bitcoin on Ethereum
Davis highlights stats from The Block portal which says 250000 Bitcoin has now been wrapped onto Ethereum.
This shows the higher use case Ethereum has in the DeFi world. A user’s Bitcoin holdings can be used on the Etheruem network on various protocols built on Etheruem.
Etheruem ecosystem hits 3 Million Users.
Further strengthening the Ethereum use case and growing adoption the DeFi Ecosystem has a milestone with 3 Million Users.
He highlights that it took 142 days for Etheruem to go from One Million to Two Million, but it only took 78 days to go from two to three. This incredible speed shows that the network’s adaptability is growing at a fast pace.
Uniswap V3 to launch on Optimistic Ethereum
Uniswap recently announced that Uniswap V3 will be launching in Optimistic Ethereum. Although right now it’s just the Alpha Launch, testing phases are yet to happen.
However, this is a great move as Optimistic Ethereum is an Ethereum layer 2 scaling solution that is natively built on the network, unlike sidechains.
Davis exclaims this as a big deal because if the load on cost can be dramatically reduced on Uniswap, it will have a great effect on networks gas fees. While Uniswap is the first one to make this step many others will follow in days to come he believes.
He also points out how big financial firms are seeing potential in Ethereum. He quotes Goldman Sachs’s recent statement which said, Ethereum’s popularity could see it become the dominant crypto currency.
Adding to the bullish case is the news of Swiss bank Sygnum becoming the first bank to offer eth 2.0 staking. This could be the first to many that will follow. Also, Brazil’s recent approval for an Ethereum ETF is a big up for the network.