ETH is quietly building a solid strength in the chain in order to build explosive dynamics
Analyst Willy Woo says there is a metric showing that ETH is about to explode. He said the fundamentals of the Ethereum supply shock have not yet appeared on the price chart of the second largest cryptocurrency.
“While BTC is boosting its ATH bounce rate, ETH is quietly building even stronger on-chain fundamentals that are not yet reflected in the price.”
The source: Willy Woo / Twitter
Supply shock is a metric that predicts the price of a cryptocurrency by analyzing the number of coins in the hands of those with a sales history compared to the others.
“At first glance, you can see a pretty tight price movement. A closer look shows that a supply shock is driving the price. This makes sense because investors’ intentions are followed before they take any action to buy or sell.
For example, if a long-term investor moves enough coins to another company (usually an exchange), all of the coins held by that investor will be reclassified as liquid or highly liquid because investors’ intentions have now changed. ”
Earlier this week, the analyst also discussed how Bitcoin competes with gold as an inflation hedge.
Today he expanded the idea in a tweet suggesting that DeFi would compete with the traditional banking sector for market share.
“1) Valuation of the banking sector: 7.3 T $
2) Inflation hedge rating (store of value): approx. 500 TB
DeFi competes for (1). Bitcoin competes for (2). ”
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According to Dailyhodl