dailyhodl.com
Crypto trader Lark Davis says Ethereum’s (ETH) value could erupt over 6x from its current price as he sees the leading smart contract platform’s market cap rising to trillions of dollars.
In a new video, Davis says that Ethereum achieving a similar market cap to tech giant Apple isn’t so far-fetched considering the growth of the decentralized finance (DeFi) and non-fungible token (NFT) subsectors, which are largely powered by ETH’s network.
“I would say in the future a $2 trillion market cap for Ethereum is not actually that insane. I mean, right now Apple… the market cap currently for Apple is just a little over $2 trillion, almost $2.1 trillion. So we could see something like Ethereum which is the settlement layer of the cryptoverse right now with NFTs and DeFi and daily settlement, for payments and stuff like that. Although I’m crazy, I think this bad boy has a lot of room left to run.”
A $2 trillion market cap for Ethereum represents upside potential of nearly 550% from its current valuation of $309 billion, according to CoinMarketCap.
The trader reminds his 307,000 YouTube subscribers that the Ethereum economy is showing rampant signs of life.
“The number of users still has a massive exponential growth potential here, so that’s something to keep in mind. We’ve also seen the decentralized exchange volume absolutely fricking exploding up 8,500% in the last 12 months as well so we can see the user base, the actual economy of Ethereum is growing like crazy because there’s actually stuff you can do on Ethereum.”
Davis is also bullish on some of the attention that Ethereum is receiving from institutional investors and big players in the investment space, including Cathy Wood of Ark Invest.
“Cathy Wood’s Ark Invest, they for the first time ever, have bought Ethereum. They bought 639,000 shares of Grayscale’s Ethereum Trust. That is pretty gosh darn amazing. That means that Ark Invest has been looking into Ethereum more and more. They have been understanding what the value propositions of Etheruem are. And this is them literally putting their money where their mouth is and buying Ethereum and getting direct exposure to the asset class. This is a big deal because Cathy Wood’s Ark Invest, a lot of people pay attention to what she buying, what her firm is investing in, so them getting into Ethereum, that is a big deal now.”