Why Ethereum ($ETH) Could Surpass Expectations, Explains Coinbase Research Analyst David Han

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On the 15th of May, 2024, Research Analyst David Han from Coinbase Institutional shared an enlightening report named “Monthly Ethereum Outlook: Our Anticipations.”

I, as a crypto investor, acknowledge that Ethereum hasn’t lived up to expectations this year, but I’m optimistic about its future. I firmly believe that Ethereum is poised for a rally later in the cycle due to its robust fundamentals. The technology behind Ethereum boasts strong persistent demand drivers and offers distinct advantages when it comes to scaling.

Han emphasizes that Ethereum’s historical price trends reveal its twofold story as both a “digital asset for value storage” and a “technological token.” According to him, this unique characteristic enhances Ethereum’s robustness and allure within the cryptocurrency sphere. Moreover, unlike some other digital currencies, Ethereum does not experience significant pressure from the supply side, such as token releases or miner disposals. Instead, the expansion in staking and Layer 2 (L2) solutions has resulted in increasing and strengthening absorbers for ETH liquidity, a development that Han considers to be a favorable sign.

Han underscores Ethereum’s pivotal position in the decentralized finance (DeFi) sector. He is convinced that Ethereum’s leadership in DeFi will persist given the extensive use of the Ethereum Virtual Machine (EVM) and continuous advancements in Layer 2 solutions. These progressions keep Ethereum as the core element of DeFi, offering a robust base for future expansion.

One significant aspect of Han’s analysis revolves around the potential consequences of US-listed Spot ETH Exchange-Traded Funds (ETFs). Han posits that there might be a miscalculation regarding both the approval timeline and probability by the market. In the event of SEC approval, these ETFs could substantially enhance Ethereum’s standing in the marketplace, resulting in favorable price trends.

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2024-05-17 13:48