This past week, Ethereum (ETH) got whacked. Today, it’s recovered some of those losses, but is still down 43% off its all-time highs.
But as I told you last week, we should treat this pullback as an incredible buying opportunity.
Over the next decade, I believe Ethereum will count itself among the world’s most valuable financial assets.
Let me make that more concrete: Ethereum will likely be more valuable than Facebook, Amazon, Apple, Google (Alphabet), and Microsoft.
That’s why in April, I predicted ETH would be the next crypto to reach $1 trillion. And despite its recent pullback, it’s still up 25% since then. By comparison, the S&P 500 is up 4% and gold is up 9%.
So ETH is outperforming both stocks and gold despite seeing the biggest crypto selloff since March 2020. I want you to really think about that.
As I told you back then, the next stage of transformational software development will happen on the blockchain… not the traditional internet. And Ethereum is the world’s most widely used blockchain development platform.
Just like Microsoft was the world’s most popular PC development platform in the 1990s… And Google’s Android and Apple’s iOS are the most popular mobile app development platforms today…
Ethereum is – and will continue to be – the go-to platform for blockchain projects.
At the time of my prediction, Ethereum’s market cap was $243 billion. Today, it sits around $290 billion down from a high of $503 billion. If I’m right, we could see ETH just about triple over the coming year.
Over the longer term, I think we can see ETH reach $40,000 per token. But that might be several years away.
Let me be clear: I don’t expect $40,000 ETH anytime soon. But I believe we’ll see $10,000 ETH before the year is out. And of course, we’ll continue to see more volatility in ETH and the overall crypto space. That’s just the name of the game.
Long story short: ETH prices are going higher.
Demand for Ether Is Skyrocketing
At the time of this writing, Ethereum hosts over 2,500 applications – the most of any blockchain. And roughly 2,300 active developers are currently working on the Ethereum network. The closest competitor has just 400.
The abundance of developers and apps on Ethereum has created a network effect that attracts even more projects to Ethereum.
Any blockchain app built on the Ethereum network can plug into Ethereum’s liquidity… lending and borrowing… insurance… and much more. Ethereum acts as a vacuum cleaner sucking up more and more projects into its ecosystem.
And we’re seeing demand skyrocket:
ETH loans at crypto lending firm Genesis increased 400% from $465 million in Q4 2020 to $2.4 billion in Q1. ETH now makes up 27% of the lender’s loan book, up from just 15.5% of the loan book in Q4.
Asset manager VanEck filed to create the first Ether-focused ETF in the U.S. Meanwhile, four ETH-focused ETFs are live in Canada.
The European Investment Bank, the lending arm of the EU, used Ethereum technology to issue €100 million ($121 million) in two-year digital notes for the first time. Goldman Sachs, Banco Santander, and Société Générale served as joint managers for the notes.
This increased demand is showing up in Ethereum’s native token, ether. As you can see in the two charts below…
The number of daily transactions on the network reached a record high of 1.7 million.
And as more users compete to use the network, fees spent on these transactions also reached a record high of $70 million per day, although they’ve since pulled back some.
Here’s the thing…
All this demand is coming at a time when we’re about to see a major reduction in the incoming supply of Ethereum.
And when demand increases while supply decreases, prices have nowhere to go but up…
Ethereum’s Halving Event
In the coming months, we’ll see Ethereum’s code drastically reduce the amount of new ETH on the market.
It’s a “secret” halving-like event.
The change will happen in July. That’s when Ethereum rolls out its EIP 1559 upgrade.
Currently, Ethereum fees are based on the amount of traffic on the network. When traffic is high, miners can charge more to process each transaction.
The EIP 1559 upgrade will “burn” transaction fees paid by network users instead of sending them to miners as payment. This new “base” fee model will lower fees and speed up transaction times for network users.
Last month, the Ethereum network saw over $702 million worth of transaction fees.
That translates into nearly $8.4 billion in fees over a year.
Can you imagine what happens when over $8 billion worth of ETH disappears from circulation each year? Prices will absolutely explode.
We’ve seen similar gains during bitcoin halvings.
Readers who followed my advice and positioned themselves before the 2016 bitcoin halving had the chance to make gains as high as 140 times and 270 times their money.
Those who positioned themselves before the 2020 bitcoin halving saw my recommendations soar as high as 29 times and 51 times their money.
When you factor in the EIP 1559 upgrade… you get a halving-like event that can be life-changing for ETH holders.
That is why I want you to ignore this recent bout of volatility. The crypto market got overheated and it’s taking a healthy breather before taking off again.
And that’s why I feel comfortable increasing our buy-up-to price of ETH to $5,000 despite its recent pullback… with an eye to raise it as we see its adoption increase at a rate that can support a multi-year run to $40,000.
If I’m right and Ethereum reaches $10,000 this year, there’s still about 4x upside from here. So again, treat this pullback as a buying opportunity.
Friends, you still have a chance to get in on the ground floor of what will become the most valuable financial asset in the world. Seize this opportunity now.
Let the Game Come to You!
Editor, Palm Beach Daily
P.S. As Ethereum demand continues to gain momentum, a long-term $30 trillion revolution in an underlying ETH technology is moving right along with it…
And at its current pace, I believe it will become 25x bigger than bitcoin… like buying Microsoft in the ‘80s… or Amazon in the ‘90s.
Any one of these could have made you a millionaire many times over, starting with very little… but just like those investments, you need to get in early.
That’s why I recently shared the details of this “No. 1 investment of the decade” in an exclusive interview. Click here to watch.