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Macro trader, Raul Pal, has claimed that Ethereum might hit $20k if Metcalfe’s law is applied to it. He claimed that Ethereum price will increase just like Bitcoin did in the past. He examined Bitcoin when it first reached 1 million addresses and then applied the same to Ethereum. After examining both of them, he claimed that the price chart of both these cryptocurrencies is similar. According to the Metcalfe’s law, the more the users will be on the network, the more the network will grow.
Ethereum Price Grown 61% in 2021
D.H. Taylor of Seeking Alpha, has said that Metcalfe’s law could be easily applied to cryptocurrencies. However, this law is meant for telecommunications and applied to networks like Facebook. According to Taylor:
“The more that people integrate cryptocurrencies in their lives, the more that cryptocurrencies are being accepted, and that growth continues to push cryptocurrencies in general.”
It has been seen a lot of times that Ethereum generally follows the trajectory of Bitcoin’s price. However, it does not seem to happen this time as Bitcoin has exceeded its all-time high and Ethereum on the other side is $100 below from its all-time high. The Ethereum community seems to be quite hopeful for 2021 as its price has increased by 61%, since the starting of this year.
Other Crypto Prices Are Also Increasing
Along with Ethereum price, it has been seen that other blockchain protocols are also seeing this surge. Polkadot has recently seen a massive surge and it is able to enter the list of top 10 cryptocurrencies as per the market cap. It might also become the fourth-largest and overshadow Ripple, if it continues to grow like this only. Even though there is not any direct relation between Ether and altcoins, it still influences their price because most of the DeFi projects are built on Ethereum only.