Strategists at Fundstrat Global Advisors LLC believe that Ethereum is about to experience a parabolic price run, reaching levels as high as $10,500.
Ethereum seems to be experiencing a shift in sentiment from market participants who are becoming more bullish.
DeFi Growth May Trigger the Rise of Ethereum
According to Director of Digital Asset Strategy at Fundstrat Global Advisors, LLC, David Grider, the Decentralized Finance (DeFi) ecosystem’s growing recognition will be instrumental in the astronomic price rises ahead.
Built on top of Ethereum, it has created endless possibilities for the digital world, combining traditional finance with digital assets. Grider stated that ether is:
“The best risk/reward investment play in crypto. Blockchain computing may be the future of the cloud.”
Grider’s belief coincides at a time when the DeFi market is witnessing new highs. Information from data analytics platform DeFi Pulse reveals a boom in the market since the beginning of the year.
The platform has experienced an impressive 64% upswing from January 1. The Total Value Locked (TVL) sits close to $24 billion at the time of writing.
Since then, the total talue of locked tokens has hit new highs for many of the top-tier tokens and even newcomers.
Fundamentals Remain Bright
Even after testing the previous all-time high, it appears the second-largest cryptocurrency by market cap is yet to lose steam and could make its way to loftier price levels.
The second-largest cryptocurrency seems to be taking the spotlight. And several factors are building up momentum to validate the positive market sentiment.
One of these factors is the overwhelming support for the ETH 2.0 launch, which just hit a new record. It now holds a significant amount of the entire Ether supply.
According to a previous BeInCrypto report, it’s likely only a matter of time before this parabolic growth in the Ethereum network will become a massive supply shock. And when people realize that, it could send the token through the roof.
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