By Tobi Loba
Lark Davis, a crypto trader and analyst has stated that Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has the potential to surge over 550% from its current prices, stating that the market cap of the top cryptocurrency can rise up to trillions of dollars.
In a new video first reported by Daily Hodl, the trader stated that Ethereum can match up with the tech giant Apple in terms of market capitalization if the growth of the decentralized finance (DeFi) and non-fungible token (NFT) subsectors is put into consideration.
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Lark Davis noted:
“I would say in the future a $2 trillion market cap for Ethereum is not actually that insane. I mean, right now Apple… the market cap currently for Apple is just a little over $2 trillion, almost $2.1 trillion. So we could see something like Ethereum which is the settlement layer of the cryptoverse right now with NFTs and DeFi and daily settlement, for payments and stuff like that. Although I’m crazy, I think this bad boy has a lot of room left to run.”
Considering the $2 trillion market capitalization predicted by Lark Davis for Ethereum, it implies that the cryptocurrency has to surge relatively 550% from its current market valuation of $298 billion, according to CoinMarketCap:
“The number of users still has a massive exponential growth potential here, so that’s something to keep in mind. We’ve also seen the decentralized exchange volume absolutely fricking exploding up 8,500% in the last 12 months as well so we can see the user base, the actual economy of Ethereum is growing like crazy because there’s actually stuff you can do on Ethereum.”
The trader is also bullish on the traction the cryptocurrency is gaining from institutional investors and big players in the market:
“Cathy Wood’s Ark Invest, they for the first time ever, have bought Ethereum. They bought 639,000 shares of Grayscale’s Ethereum Trust. That is pretty gosh darn amazing. That means that Ark Invest has been looking into Ethereum more and more.
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They have been understanding what the value propositions of Etheruem are. And this is them literally putting their money where their mouth is and buying Ethereum and getting direct exposure to the asset class.
This is a big deal because Cathy Wood’s Ark Invest, a lot of people pay attention to what she buying, what her firm is investing in, so them getting into Ethereum, that is a big deal now.”
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