The Deflationary Advantage
Altcoin Daily highlights Ethereum’s deflationary nature as a key factor in its journey towards $10,000. Token burns, which reduce the amount of tokens in circulation, can have a significant impact on their value. The implementation of Ethereum Improvement Proposal 1559, known as EIP-1559, has contributed to the current deflationary state. Rising transaction fees have resulted in more ETH being burned.
Reduced Transaction Fees
Anticipating a significant reduction in transaction fees with the upcoming EIP-4844 upgrade, Altcoin Daily believes Ethereum’s prospects will improve further. This upgrade will address the issue of high fees, making the network more accessible and affordable.
Thriving Layer-2 Networks
Ethereum’s layer-2 networks, frameworks built on top of the Ethereum blockchain, are witnessing increasing activity. Altcoin Daily predicts that the success of these layer-2 networks will also contribute to Ethereum’s ascent to $10,000.
In September, it was reported that Ethereum had generated over $10 billion in revenue within just seven years. This achievement surpassed that of many leading technology firms. Altcoin Daily views Ethereum’s profitability as another strong reason why reaching $10,000 won’t be a challenge.
During the last bull run, ETH reached an all-time high of $4,891, and Altcoin Daily believes this milestone will play a major role in Ethereum’s journey to $10,000. The analyst points to higher yields and staking ratios as contributing factors.
Altcoin Daily also considers Ethereum’s energy efficiency as a bullish indicator for its transformation into a $10,000 asset. Furthermore, the absence of sell pressure from miners is another factor that he predicts will influence Ethereum’s meteoric rise.
Finally, Altcoin Daily emphasizes that Ethereum is considered an “SEC safe commodity,” adding yet another reason why reaching $10,000 is entirely plausible for the digital currency.