- Ethereum’s price could skyrocket to $41,000, expert predicts boldly.
- Institutions should view Ethereum as top collateral, not just asset.
- Ethereum’s market cap tied to assets secured, fueling massive growth.
Joseph Chalom, former head of crypto at BlackRock, has made a bold statement about Ethereum’s future, predicting that the cryptocurrency could soar to an astonishing $41,000.
He believes that Ethereum, currently undervalued, has the potential to become a critical component of the future financial system, calling it “high-octane money.” In contrast to Bitcoin, which is largely a store of value, Ethereum’s programmability enables it to drive decentralized applications (dApps), decentralized finance (DeFi), and tokenized real-world assets.
Chalom’s opinion is related to Ethereum’s price and specific purpose in the financial ecosystem. He argues that institutions must begin to think of ETH as not only an asset but also the best collateral they can have. As Chalom notes, such a paradigm shift may position Ethereum as a market leader in the international financial markets.
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How Ethereum Could Reach $41,000
Chalom points to a strong historical trend linking Ethereum’s market cap with the amount of high-quality liquid assets secured on its network. In the past five years, Ethereum has gained about $1 in market cap for every dollar of liquid assets secured. Such a correlation indicates that the price of ETH will increase along with the total value locked (TVL) on Ethereum.
Another analyst went a step further, saying that with the tokenization of $10 trillion of assets on Ethereum, the cryptocurrency’s market capitalization could grow to $5 trillion. This would take Ethereum to the price of $41,000 per ETH, which would be far beyond its current market value.
The Short-Term Struggle: Can Ethereum Break $4,500?
In the short term, Ethereum is seeing a bounce from one of its key support levels, indicating some potential for upward movement. Nevertheless, further gains may not be possible due to resistance ranging between $4475 and $4612, given that the selling pressure may be high around the 4500 mark.
If Ethereum can overcome these levels, it may rise to $4,800 or even $4,900, but the situation in the market is unpredictable.
The future of Ethereum is still promising, however, and many believe that the digital currency will have a central role in the new world of decentralized finance. The journey to $41,000 might be gradual, but with institutional support and a growing ecosystem, Ethereum’s future is looking increasingly promising.
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