10 Reasons Why Ethereum is Rising: Insights from YouTuber Boxmining and Spencer Noon's End-of-April Commentary

Ethereum's ETH continues to hit new highs, surpassing $4,000, marking an almost 90% increase in the past month. What could be the reason behind this surge?

Easy Understanding - BrainBro Blockchain

Taiwanese renowned cryptocurrency YouTuber BrainBro, published a video in March titled "Top 1 Cryptocurrency to Buy in 2021", where he expressed strong optimism for the growth of Ethereum. For readers who are new to cryptocurrencies, this content can be referenced.

Spencer Noon's Commentary at the End of April

On April 30, prominent cryptocurrency investor Spencer Noon also published an analysis titled "Ten Reasons Why Ethereum Will Reach $10,000". Here are the reasons he mentioned:

Reason 1: Ethereum's High Transaction Fee Revenue Indicates Strong Demand

He cited Ethereum and protocols built on it, stating that Ethereum's transaction fee revenue surpasses other blockchains, confirming high demand for Ethereum.

Reason 2: Ethereum Processes a Massive Volume of Transactions

Ethereum processes over $30.5 billion worth of digital assets daily, more than Bitcoin and other blockchains. In comparison, PayPal handles only about $2.5 billion daily.

Reason 3: Ethereum Has Many Active Addresses

Active addresses refer to wallet addresses interacting with the blockchain. Noon mentioned that Ethereum currently has 625,000 active addresses based on a 90-day moving average, and this number is continuously increasing.

Reason 4: DeFi Locked Value

He noted that the locked value in DeFi has reached $65 billion (reached $85 billion before the May 10 deadline), with 16 different platforms having over $1 billion in locked value, indicating Ethereum has become an institutional-grade fintech platform.

Reason 5: Huge Stablecoin Supply

The presence of stablecoins is considered a fundamental requirement for the successful application of public chains. Noon stated that Ethereum has a high supply of stablecoins, with up to $50 billion, 500,000 daily senders, and $20 billion in daily trading volume. This indicates a sign of explosive product-market fit.

Reason 6: Flourishing Decentralized Exchanges

The trading volume of decentralized exchange (DEX) exceeds $60 billion, with an annual growth rate of over 6000%, proving that the liquidity of decentralized finance (DeFi) is sufficient to compete with centralized finance (CeFi).

Reason 7: Bitcoin Value Migration

Over 200,000 Bitcoins are stored in various forms on the Ethereum network. Noon believes this indicates that Ethereum will form economic attractiveness for all assets, including cross-chain or physical assets such as Bitcoin.

Reason 8: NFT Craze

The trading volume of NFT transactions on Ethereum has exceeded $600 million, with 13 items sold for over $1 million. This indicates that more types of applications will be integrated onto the Ethereum network.

Reason 9: Rise of Layer 2 Solutions

He believes that Layer 2 solutions like Polygon MATIC already have a daily transaction volume of one million and many blue-chip DeFi protocols integrated. For example, Aave has over $20 billion in liquidity. This has overturned the notion that Ethereum cannot scale.

Reason 10: EIP-1559

In July, EIP-1559 is set to be activated. Noon believes this could lead to the burning of hundreds of millions worth of ETH annually, serving as a strong catalyst to boost ETH value and as a fundamental investment case.

Further reading: What is EIP-1559