Ethereum’s broader development market is seeing huge advancements in both the fundamental and technological aspects. While ETH prices have not yet caught on, an influential crypto VC believes the protocol could soon see a surge as the “new kid on the block.”
ETH to $7,500
Placeholder VC founder Chris Burniske, a popular cryptocurrency proponent on Twitter known for his analysis on on-chain data, said on a tweet that Ethereum is expected to top $7,500 – over 5x of its prior all-time-high – if Bitcoin passes $50,000 in the next market cycle.
Burniske’s comments come after investors and traders cite a $50,000 valuation per Bitcoin in the “upcoming” cryptocurrency price boom. For context, Bitcoin is currently down over 50 percent from its January 2018 ATH of $20,000. In comparison, ETH is down 85 percent, with the protocol once trading at $1450.
In his Twitter thread, Burniske said it’s “inevitable” for Bitcoin to break $50,000, and Ethereum’s strong on-chain economy leads to the protocol surging almost 3,000 percent in gains from the current price of $235.
Presumably, Burniske’s pointing out the increased and bolstering DeFi market, which has caught on in recent times and is leading to massive development on Ethereum. As an extension, institutional activity has increased, with firms like a16z and Pantera pouring millions into DeFi-centric products.
Another factor for Ethereum’s potential price rise is the mainstream realizes the protocol as the “new kid on the block,” believes Burniske.
Oncoming Investment Frenzy
The VC and cryptocurrency author thinks the above will lead to an “investment frenzy,” as the general population talks about Ethereum similar to how most know, or have heard of, Bitcoin as a currency and a protocol.
He added ETH will “sop up” capital from most layer-1’s, as many will remain immaculately built ghost towns. Furthermore, Burniske stated but “another capital formation bubble” will happen, standardized by code and legal as w/ ERC20.
Meanwhile, Messari founder Ryan Selkis jumped into the thread’s comments, stating if computational money was the goal and sovereign level censorship resistance was not needed, a layer two stablecoin was enough to fund the DAOs and dApps.
To that, Burniske answered:
“Those layer-2 stablecoins will be anchored into Ethereum [and a] shortlist of other high-security & interoperable smart-contract chains.”
He added if one wanted sovereign value all the way through (which I think people will increasingly want as nation-states show their age), then ETH and DAI.
Selkis’ comments came after Burniske said that ETH is “general-purpose computational money” and that it’s hard to not see it winning on many fundamental levels in the times ahead.
Presumably, he was referred to the global pandemic and instability fears buoyed by political uncertainty and excessive money printing in the U.S.