Ethereum has been going crazy for the past few weeks; new all-time highs for Ethereum, and we are even over $3,000. But it is just starting, and it is certainly not the end. It is possible that Ethereum will become a five-digit asset and will be worth $10,000 or more in this market cycle. Still, in the long term, the value of Ethereum could reach the point where it could become a multi-trillion-dollar market capital asset.
You will notice that Ethereum is up by more than fifty percent in the last month from the chart above. It is an incredible move for a cryptocurrency with a multi-billion-dollar market capital. It may not be a big deal if we get a red monthly candle; it is very normal. We see these correction phases occurring for assets, especially after an incredible run, but a short-term correction will not stop Ethereum from going to $10,000. The network and the entire asset are too bullish to be stopped, there will be roadblocks and turbulence, but Ethereum is definitely on its way to the moon and is even currently 30% on its way to hitting the five-digit target.
Ethereum is a bullish asset to the extent that it now has a bigger market capitalization than the Bank of America. We are currently witnessing the flipping of the new economy and the traditional economy. Seeing Ethereum being worth more than the Bank of America is incredible, and it shows that the market is betting on Ethereum being the settlement layer of the internet. A decentralized network is now worth more than one of the biggest banks in the world.
Ethereum is currently settling thirty billion dollars of value daily on-chain despite the high gas fees; this is twice what Bitcoin is doing and ten times PayPal’s daily value transfer.
Ethereum is the king of DeFi; the best DeFi applications and those with the most value locked are all built on Ethereum. Ethereum’s high fees have been limiting Ethereum lately; Solana and Polygon are making the situation easier, which explains why the prices are rise. But, as proof of stake comes in and Optimism launches, the gas fees will reduce, and the price of Ethereum will surge like crazy, a $10,000 Ethereum is not as far as it seems.
There is about fifty billion dollars worth of stable coin supply on Ethereum. This is a sign of an explosive product market because people love stable coins; it is an easy way to send money from one person to another without losing value.
Analysts agree that Ethereum will reach the five-digit price target of $10,500; it will reach new highs and continue to outperform Bitcoin during this cycle. One reason why this will happen is because of the development happening on Ethereum. Large amounts of development are happening on the network; Ethereum has had a massive lead in terms of development and will see that in reality when we look at the economic activity happening on Ethereum.
