According to crypto trader and ETH maximalist Kaleo, ETH will achieve an all-time high (ATH) in excess of $1 trillion during its current bull run.
He believes that if tech stocks can show such phenomenal growth, then ETH can do something similar. While anyone familiar with crypto knows that such predictions are a dime a dozen, they very often fail to pan out. Is there a possibility that maybe this time could be different?
Why is this so crazy to believe considering the exorbitant euphoria and rapid inflation in the traditional tech market?
— K A L E O (@CryptoKaleo) August 30, 2020
Tech Stocks are Extremely Hot
Last week it emerged that U.S. tech stocks are now worth a stunning $9.1 trillion, $200 billion more than the value of all European stocks combined. The so-called Big Five – Apple, Amazon, Microsoft, Alphabet, and Facebook – on their own now account for 23.8% of the entire S&P 500.
Driven by these stocks, the S&P 500 has rebounded more than 55% from the coronavirus-induced low point in March, and Morgan Stanley predicts that Apple will significantly exceed its unprecedented $2 trillion valuation.
Kaleo’s school of thought suggests that ETH might scale similar valuation heights in the long run. His trillion-dollar ETH prediction may or may not have been made tongue in cheek, but the question is nevertheless a valid one.
Will ETH eventually pull an Apple or an Amazon on the crypto market and achieve a market cap the size of the Indonesian economy?
Can ETH Repeat the Trick?
To answer this question, it’s important to keep in mind that such a market move would not be so much about ETH breaking out as it would be about the entire crypto market surging.
Such a movement would be precipitated by large scale crypto adoption, leading to heightened market capitalizations similar to the 2017 bull run.
Adoption is no longer the stuff of fantasy and hopeful Reddit posts. Across large swathes of the developing world, in particular, crypto has crossed the rubicon from being an experimental unit of exchange to becoming a bona fide economic mainstay.
It is preferred to national fiat currencies by many in countries like Venezuela, Nigeria, and Zimbabwe. In Venezuela, for example, where crypto has achieved a level of public acceptance unlike anywhere else, DASH is expected to exceed one million users this year.
If this pattern continues across the developing world, and regulators create a solid framework for crypto, there is every possibility that ETH could reach and even exceed Kaleo’s prediction.