On Thursday (March 18), popular New Zealand-based crypto analyst and influencer Lark Davis (@TheCryptoLark\u00a0on Twitter) talked\u00a0about the reasons for his bullishness on Ethereum (ETH).<\/p>\n
Davis started by talking about the supply of Ethereum:<\/p>\n
\u201cFirst, let\u2019s start off by talking about the supply of Ethereum right now. This week, we had the second biggest Ethereum outflow from centralized exchanges with 235,000 Ethereum withdrawn in a single hour. When the price went down, buyers stepped up big time. That\u2019s just the second biggest of this year, of course, but still it shows that right now interest is very high in Ethereum\u2026 This is bullish as it shows that the demand still red-hot for Ethereum. In fact, on-exchange balances for Ethereum just reached a new low. Ethereum is in accumulation mode; whales are still buying heavily.<\/em>\u201c<\/p>\n He then went on to explain that the reason for so much demand for Ethereum for investors is that a lot of them expect the Ethereum price to go to $10,000 and possibly \u201cmuch higher than that.\u201d<\/p>\n Here are the main reasons for Davis\u2019 bullishness on Ethereum:<\/p>\n NFT Mania<\/strong><\/p>\n \u201cSeems everyone, of course, is talking about NFTs these days, and this is really important because an entire new audience of people are being exposed to an exciting use case for cryptocurrency and, of course, to Ethereum\u2026 <\/em><\/p>\n \u201cEvery major NFT market is an Ethereum market\u2026 other chains are going to do NFTs\u2026 but as so often happens, all the liquidity and all the most valuable stuff is on Ethereum.<\/em>\u201c<\/p>\n Huge Potential of DeFi<\/strong><\/p>\n \u201cWe still only have 1.6 million unique addresses which have used DeFi protocols. That means that only around 3.5% of all active Ethereum wallets have used DeFi. The biggest thing happening in cryptocurrencies is still only a tiny fraction of users have actually used it. That\u2019s insane. This says one thing to me: we\u2019re so early for DeFi and there\u2019s still so much room to grow\u2026 other chains are doing DeFi\u2026 but again the biggest and the best protocols with the deepest liquidity are building on Ethereum.<\/em>\u201c<\/p>\n