• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
Breaking News: Binance Sees $218 Million In Outflows Following CFTC Lawsuit
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: Binance Sees $218 Million In Outflows Following CFTC Lawsuit
ethereum

These 5 Factors Suggest Demand for Ethereum Could Set a New High

Nick Chong by Nick Chong
3 years ago
in Ethereum
Reading Time: 2 mins read
Advertisement
Advertisement

In 2018, Ethereum rallied as high as ~$1,430 on the back of an influx of demand caused by the then-ongoing initial coin offering (ICO) boom.

ICOs had to raise money, and ICOs often raised money so through ETH — a widely-adopted, well-known, and easily-accessible cryptocurrency. Hence, the demand for Ethereum spiked as investors began to speculate they could multiply their Ethereum by trying their hand at early-stage crypto startups.

With ICOs now bust, one of the cryptocurrency’s biggest demand drivers is gone. Avi Felman of BlockTower Capital recently went as far as to brand the all-time high price ETH reached a “red herring,” citing the unique and now-defunct dynamic that pushed the asset higher:

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

“The ETH all time high price is likely a red herring, and was driven by a very specific dynamic (buy ETH to place in ICOs, no sell pressure because ICO treasuries didn’t think about that).”

The ETH all time high price is likely a red herring, and was driven by a very specific dynamic (buy ETH to place in ICOs, no sell pressure because ICO treasuries didn’t think about that). BTC had no such dynamic. When BTC reaches its new ATH hard to see ETH anywhere near its ATH

— Avi IS RIGHT (@AviFelman) June 15, 2020

Yet a promient analyst has postulated that demand for Ethereum will eventually hit a new all-time high.

Related Reading: Buying Bitcoin at $8k or $9k Won’t Matter in 2 Years: Fund Manager Explains

What Could Drive Ethereum Demand to Fresh Highs In the Coming Cycle

In a recent Twitter thread, a trader revealed a confluence of reasons why the demand for ETH will reach a new peak.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

His attempt to do so comes as sentiment has been shared by certain traders and commentators that ETH’s golden era is long passed.

Some of the reasons the trader listed are as follows:

  • DeFi services are going “parabolic,” which should eventually lead to a spike in ETH demand.
  • The ICO boom is unlikely to be the only ever macro driver of demand for Ethereum.
  • The Ethereum 2.0 may make “every other blockchain redundant,” causing a surge in demand for ETH as demand for blockchains may rise.
  • ETH’s gains were actually relatively muted in 2017 compared to some other coins like XRP and XVG, potentially imbuing the altcoin will potential to rally even higher in the next cycle. “More altcoins saw larger returns without any real chain activity or metrics. We could say ETH was a fair value for the 2017 period,” the trader explained.

Not Everyone Is Convinced ETH Is a Good Investment

These catalysts may be bonafide, but not everyone is convinced that Ethereum is a viable investment.

Galaxy Digital’s Michael Novogratz wrote in February that Ethereum remains in a “proving phase.” To him, the cryptocurrency and underlying blockchain do not yet have a killer use case like Bitcoin has being “digital gold.”

1. GLXY is a big investor in Ripple Labs. I would like to see them do well. @bgarlinghouse has done a great job as ceo. I commented the XRP tokens underperformed $btc last year because Ripple owns a lot of them. I have been almost solely long $btc for the past 15 months.

— Michael Novogratz (@novogratz) February 6, 2020

The calls for caution when dealing with the altcoin has been echoed by Jeff Dorman, CIO of Arca. He explained that because Ethereum is so closely correlated with Bitcoin and smaller altcoins at the moment, investing in ETH is useless.

Related Reading: Bitcoin Hash Rate Recovers to Pre-Halving Levels, But a Chinese Mine Just Burned Down
Featured Image from Shutterstock
Price tags: ethusd
These 2 Factors Suggest Demand for Ethereum Could Set a New High
Tags: bullishethereumethusdprice
Tweet123Share205ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

Ethereum Layer 2

Arbitrum, Optimism, And Polygon: Which Is The Ultimate Ethereum L2?

13 hours ago
Ethereum ETH Prices Below $2,000

Ethereum Pinned Below $2,000 Despite Network Burning Over 3 Million ETH

2 days ago
Ethereum (ETH) number of addresses surges

Number Of Ethereum Addresses In Profit Hits 10-Month High As ETH Continues Rally

5 days ago
Ethereum bull

On-Chain Data Indicates Ethereum’s Bullish Trend Could Continue

5 days ago
Ethereum

Ethereum Bullish Signal: $560M In ETH Exits Exchanges

6 days ago
Bitcoin Market Dominance Hits 9 months High as Altcoins Turn Red

Bitcoin Market Dominance Hits 9-Month High As Altcoins Turn Red

1 week ago

Premium Partners

Play Finance

Trending Projects

  • 4 Best Upcoming ICO For 2023

    1 week ago
  • Crypto Investment for Long Term Growth in 2023

    1 week ago
  • 5 Cryptocurrency To Invest In 2023

    1 week ago

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
  • The Future Of The Crypto Industry And One Of Its...

    10 hours ago
  • Don’t Miss TMS Network (TMSN) 100x Growth Train; Algorand...

    13 hours ago
  • Riding The 2023 Bull: How Bitcoin, Ethereum, And SignUp...

    14 hours ago
  • Three Unique Top Presales To Buy in 2023: RobotEra...

    14 hours ago
  • Meta Masters Guild On Track to Become Web3’s Largest...

    15 hours ago

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Links

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play Games
  • Play Casino Games
  • Free Spins
  • Play Finance

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.