Ethereum (ETHUSD)

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WHY ETHEREUM IS ABOUT TO EXPLODE 🤯
The launch of the Ethereum ETFs is a game changer.

A supply shock is forming…

It’s the perfect storm…

These are just some of the latest insights from our very own Jamin Currie.

Eth
In our latest YouTube video (you should really subscribe if you haven’t already…) Jamin broke down 6 reasons you need Ethereum.

Let’s break them down.

1. What can we learn from prior cycles?

Historically, Ethereum has always outperformed Bitcoin at this point of the cycle.

2017 cycle: ETH outperformed BTC by 550%

2021 cycle: ETH outperformed BTC by 250%

Now that is only 2 data points, but you can see the trend.

And there’s nothing suggesting that this won’t be the case again.

“In our current cycle, we’re just after the Bitcoin halving. And it’s always at this point in the cycle to where the crypto market tops that Ethereum starts to seriously outperform Bitcoin.”


Jamin Currie
However, the level of outperformance from Ethereum has been diminishing.

So for this cycle, Jamin is predicting a ~125% outperformance. (over BTC)

As the saying goes: “History doesn’t repeat itself, but it often rhymes”.

2. The Ethereum ETFs are coming

As we mentioned at the start of this Newsletter, the Ethereum ETFs are launching on July 23rd.

And they are going to be MASSIVE.

One of the most underrated aspects of the Ethereum ETF approvals was the classification of Ethereum as a security.

That statement alone just de-risked ETH.

No longer does it have the dark cloud of lawsuits from the SEC looming over it.

But what level of inflows can we expect from them?

Bitwise’s CIO, Matt Hougan, is predicting $15 billion in net inflows for the Ethereum ETFs in their first 18 months.

“Over time, I think we see serious inflows into these Ethereum ETFs. And the market isn’t pricing this in yet.”


Jamin Currie
3. Supply Shock

Ethereum’s supply side dynamics are ridiculous.

For the past ~2 years, Ethereum has been deflationary at a rate of -0.132% per year.

This means no new supply has been created. (in fact the circulating supply has been decreasing).

ETH supply
ETH supply since The Merge

This is completely different to Bitcoin which currently has an inflation rate of 0.85%.

But, this gets even better when you consider the amount of Ethereum locked for staking.

Right now ~28.06% of the Ethereum supply is being staked. (effectively taking it off market and into the hands of long-term holders)

AND…

Exchange balances are also hitting all-time lows. (which we’ll dive into in the next section)

“If you combine this ever decreasing supply with new demand from the Ethereum ETFs, the laws of supply and demand suggest price only has one way to go…”


Jamin Currie
That’s an insanely good setup heading into the launch of the Ethereum ETFs.

And those are the first 3 reasons why Ethereum is set to explode.

For the final 3 reasons you’ll need to watch the full video… (sorry we had to do it)

It’s a banger. Trust us.

Plus there’s even a juicy Ethereum price prediction at the end that you’ll not want to miss.