Digital assets management firm, Magnetic’s Managing Director Megan Kaspar has affirmed her earlier conviction that Ethereum will trade in the $8000-$10,000 range before December 31, 2021, a few months after she successfully predicted that the asset would hit $3000 when Ether was trading close to about $1,200 in January.
Ethereum’s coming upgrade driving increased demand
Speaking to Yahoo Finance on Friday, the crypto pundit noted that Ethereum was already experiencing a huge amount of demand from investors as they preferred using crypto as a favorite tool for hedging against inflation as the FED slows down on printing U.S. dollars.
She also applauded the recent developments around the Ethereum blockchain asserting that they would play a huge role in pushing Ether’s price higher. According to Kaspar;
“We have two network upgrades one of which had already been initiated which basically changed the mining fees on the network and then towards the end of the year beginning of next year we will have about a million worth of Ethereum coming out of supply. That will initiate it becoming a deflationary asset. That’s why we are looking at the eight to ten price call being very much a possibility.”
An increased volume in NFT sales on the Ethereum blockchain was also a major catalyst towards the asset’s price appreciating with over $900 million worth of NFTs being sold in August alone, including the famed ether rocks which have become a hot sale, often retailing at a base price of $100 million.
In a previous release, we reported how Ethereum had surpassed Bitcoin in performance especially after the London Hard Fork, a fact that Megan concurred, with some crypto assets breaking from their trends leaving Bitcoin lagging behind. Last week, deVere Group, C.E.O Nigel Green also confirmed this turn-over asserting that he expected Ethereum’s outperformance of bitcoin to continue for the rest of 2021.
Investors snubbing Bitcoin for smaller assets
An increased indulgence by institutions and wealthy investors on smaller projects especially after hopes on a Bitcoin ETF being approved before year-end kept dwindling was also another reason why Megan believes that ETH’s price along with other mainstream projects such a Solana were poised to keep bolstering.
With bigger investors joining the crypto and digital assets bandwagon, it is expected that the industry will experience a trickle-down effect as more people become aware of existing opportunities gaining exposure in other smaller assets and chains which help grow those ecosystems.
“When you look at Solana, Cardano, these ecosystems have all experienced over 2000% returns this year alone which is higher than Bitcoin and Ethereum. I suspect that we will see periphery”.