{"id":482888,"date":"2022-02-04T20:30:03","date_gmt":"2022-02-04T20:30:03","guid":{"rendered":"https:\/\/uniquehot.com\/?p=482888"},"modified":"2022-02-04T14:58:34","modified_gmt":"2022-02-04T14:58:34","slug":"why-ethereum-could-see-4x-increase-says-this-model","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/ethereum\/why-ethereum-could-see-4x-increase-says-this-model\/","title":{"rendered":"Why Ethereum Could See 4x Increase, Says This Model"},"content":{"rendered":"

Ethereum has experienced a market pullback following bitcoin recently. Although the market remains in a downtrend, the digital asset has been holding up quite nicely. Ethereum has been trending above $2,800, almost 50% down from its all-time high. But a model suggests that three is a 4x movement in the near future of the digital asset. Let\u2019s take a look at this model.<\/p>\n

Ethereum To 4X?<\/h2>\n

In a recent Twitter thread, a crypto investor known as Shaan Puri lays out the model that could drive Ethereum to four times its current price. It starts out by stating that the digital asset is currently undervalued by up to 4 times meaning that they expect the price to be much higher than it currently is.<\/p>\n

Related Reading |\u00a0TA: Ethereum Recovers Losses, Why Bulls Face Major Challenge<\/a><\/strong><\/em><\/p>\n

Pointing to a basis laid out by Ryan Allis, another crypto investor, Puri explains how the former\u2019s model puts ETH at $10K. Instead of just going through \u201chopes and dreams\u201d or the usual wider adoption argument, it uses three key attributes to put the cryptocurrency at such a high price.<\/p>\n

\"Ethereum<\/p>\n

ETH recovers above $2,800 | Source: ETHUSD on TradingView.com<\/a><\/pre>\n

The first of these is the revenue generated by the asset. As with many crypto projects, sending the tokens incur a fee on the part of the sender. This fee is then paid to the miner for providing the computational power required to confirm these transactions. Puri points out that in January alone, generated revenue from transaction fees was $1.3 billion, which are then split into the base and tip fee.<\/p>\n

With the implementation of the EIP-1559 last year, the ethereum fee burn was implemented. With time, more ETH is being burned than is being created, thus turning the digital asset deflationary.<\/p>\n

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Google \u201cETH watch the burn\u201d<\/p>\n

There's a great website that shows you how much ETH supply is being reduced everyday. <\/p>\n

Last 24hrs, $36M worth of ETH was burned. <\/p>\n

Long term, this is why ETH believers created the term \u201cultra sound money\u201d bc ETH supply goes down over time pic.twitter.com\/yzQ21KuWtD<\/a><\/p>\n

— Shaan Puri (@ShaanVP) February 2, 2022<\/a><\/p><\/blockquote>\n