2021 is a year full of excitement for the crypto market in general and for the Ethereum currency in particular.

When 2021 began, the value of Ethereum was just over $720.

At the time of writing this article, Ethereum is trading just below the $4,000 level.

Thanks to the coin’s remarkable performance and its exponential rise in a short period of time, many cryptocurrency enthusiasts have made their own predictions about the current rally of Ethereum, and see it on its way to the $10,000 level.

Share “Spencer Noun”, founder of the “Project”our networkHe recently posted his bullish predictions regarding Ethereum in a series of tweets.

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According to Noon, there are 7 reasons why Ethereum may reach $10,000:

1- Ethereum generates the largest return on network fees:

Analyst Spencer Nunn commented on this by saying:

Ethereum dwarfs the rest of the blockchain networks ahead of it in terms of fees paid.

Currently, Ethereum has nearly $7 billion, which confirms the huge demand for the Ethereum space.

2. Ethereum settles $30.5 billion in value per day, much more than Bitcoin and every other blockchain:

To understand this context, we compare what Ethereum settles with PayPal, the latter of which only settles about $2.5 billion per day.

3- The rise of active Ethereum wallets:

The number of active daily Ethereum addresses and wallets has risen to 625K (the 90-day moving average) recently, well above the level recorded earlier:

4- Dependency of DeFi projects on Ethereum:

According to “Spencer Nunn”:

There are now $65 billion in decentralized finance projects locked in, with 16 different projects having over $1 billion in “TVL” locked in value — a sign that Ethereum is an enterprise-grade financial technology.

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5- Increasing the supply and market value of Ethereum-based stablecoins:

Ethereum currently has over $50 billion in stablecoin supply, with the network having 500,000 unique senders daily.

In addition, $20 billion is exchanged per day, which is a sign of Ethereum’s suitability for powerful products.

6- Increasing the liquidity of the decentralized trading platforms (DEX) based on Ethereum:

The sixth reason is related to the liquidity of DeFi projects as trading volumes on DEX platforms have increased.

Noon found that the trading volume of DEX platforms reached over $60 billion, an increase of nearly 60 times year-on-year.

Ethereum is arguably also becoming more attractive thanks to its emergence as an “economic vessel for all assets, including bitcoin.”

This can be best demonstrated by the fact that more than 200,000 bitcoins are now represented on Ethereum in various forms.

7- The boom of non-fungible digital tokens (NFTs):

Sales of non-fungible NFT tokens have seen sales of over $600 million on Ethereum.

Finally, and perhaps the most important reason that could drive the value of Ethereum so high, is the hype and progress around the EIP-1559 upgrade that will replace the mining mechanism with stakes and burn fees, making Ethereum’s supply deflationary.

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#10: Finally, in less than 3 months (!) the EIP-1559 upgrade will be activated, potentially resulting in hundreds of millions of ETH dollar It gets burned every year – that’s a huge motivator for ETH dollar Get the value and its overall underlying investment condition. pic.twitter.com/Suvvqp4OMG

– Spencernoon April 30, 2021

These were the main reasons that could lead Ethereum to breach the $10K level.

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