Ethereum Potentially Surpassing $17K: Analyst labels Ethereum as 'Digital Gold with Yield'
Taking a Swing at Ethereum's Future Price
Ryan Sean Adams, the co-founder of Bankless and a long-time Ethereum (ETH) enthusiast, stirred up a fresh debate when he proposed a price target of $17,000 for ETH. This ambitious figure represents almost a nine-fold increase from its current value.
Adams' argument is straightforward: Ethereum can burgeon into a $2 trillion market cap by becoming the ultimate store of value, a blend of monetary premium and staking-based income, which he nicknamed "digital gold with a side of passive income."
The Blue-Money Gospel
The prospect of ETH reaching $17,000 captured attention earlier this year when an anonymous analyst, Kiu_Coin, hypothesized that Ethereum was undergoing a traditional "shakeout." This brutal correction supposedly serves to purge weak hands before a monumental surge — simulating the 1,310% uptick Ethereum experienced in 2021.
Adams emphasized this narrative on his platform, asserting that ETH, the world's second-largest cryptocurrency by market cap, could potentially match Bitcoin's towering $2 trillion valuation while providing handsome staking rewards. Refusing to mince words, Adams insisted that Ethereum must heed Bitcoin's playbook, follow what he coined the "Blue-Money Gospel."
In Adams' view, "Money is beliefs written in code." He implored ETH holders to "stake, recruit, and chastise anyone who sells." According to him, "Without ETH, there's no DeFi. Without ETH, there's no cryptocurrency liberty."
The gospel redefines ETH as more than just the fuel for decentralized applications. Adams argued that Ethereum, particularly in its post-Merge and EIP-1559 form, is not merely programmable money but a commodity with a monetary premium bolstered by actual yield and deflationary mechanics.
Cathie Wood's ARK Invest supports this perspective, likening ETH staking returns to yield-bearing U.S. Treasury bills in January, further reinforcing the "digital bond" image.
Frax Finance founder Sam Kazemian also concurred in a recent Bankless episode, asserting that Ethereum's primary flaw is not technical but narrative-driven. He claimed ETH inadvertently shifted to being valued like a discounted cash flow asset rather than as a store of value commodity.
"Ethereum, the tech, is the most bullish thing in crypto," Kazemian stated. "But ETH, the asset, requires some adjustment."
The Reality of Ethereum's Price
Naturally, Adams' optimistic outlook hasn't gone unchallenged. Detractors have criticized the ethereum-as-gold comparison, with Boyd Cohen dismissively commenting, "Bitcoin is indisputably scarce, whereas Ethereum is not."
Swan Bitcoin's John Haar further questioned the very essence of ETH's value proposition, asking, "Where on earth is this passive income going to come from? ETH isn't even currency."
The ratio of ETH to Bitcoin has also emerged as a contentious issue, with critics arguing that Ethereum is gradually squandering its position as a monetary asset, having fallen 77% from its December 2021 peak according to this metric[3].
Recently, Ethereum has shown signs of revival. Following a difficult Q1 and crashing to $1,400 in April, ETH's price has surged approximately 30% to trade just below $1,800. However, the broader picture remains poor, with the asset down 44% year on year and 63% below its $4,878 peak.
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[1] [Article discussing the debate between Bitcoin and Ethereum.]
[2] [Analysis comparing Bitcoin and Ethereum's value propositions.]
[3] [Data on the ETH/BTC ratio's decline.]
- Given the bullish sentiments of Ryan Sean Adams, co-founder of Bankless, a potential price target for Ethereum (ETH) is $17,000, representing nearly a nine-fold increase from its current value.
- Adams envisions Ethereum becoming a $2 trillion market cap by positioning it as a blend of monetary premium, staking-based income, and digital gold, a concept he terms as "digital gold with a side of passive income."
- In the view of Cathie Wood's ARK Invest, ETH staking returns can be compared to yield-bearing U.S. Treasury bills, further emphasizing the "digital bond" image.
- Frax Finance founder Sam Kazemian concurs, stating that Ethereum, particularly in its post-Merge and EIP-1559 form, is not just programmable money but a commodity with a monetary premium, yield, and deflationary mechanics.
- John Haar from Swan Bitcoin has questioned the value proposition of Ethereum, asking where the passive income will come from, as ETH isn't even considered currency.
- Boyd Cohen dismissed the ethereum-as-gold comparison, stating that Bitcoin is indisputably scarce, whereas Ethereum is not.
- Detractors have also criticized Ethereum's declining ratio with Bitcoin, arguing that Ethereum is not maintaining its position as a monetary asset, a concern evidenced by the 77% drop from its December 2021 peak according to the ETH/BTC ratio.
