Ethereum May Surge Over $20,000, Coin Bureau Reported

The host of Coin Bureau thinks that Ethereum can possibly reach a potential level of over $20,000 thanks to an emerging sector of crypto markets.

In a recent video, the reputable analyst known as Guy stated that decentralized finance ( popularily known as DeFi) and its particularity of being able to replicate the services of classic finance without the downsides will be the catalyst that will bring Ethereum to new peak levels.

Guy told his 1.13 million YouTube subscribers that regular finance is entirely replaceable.

“Unsurprisingly, the banks have been performing pretty poorly over the past decade. From the US banks, to those of China, Japan and Europe, an abysmal performance from a once-towering industry. Just try to picture that: this is the sector that caused the 2008 financial crash. They have honed the craft of privatizing gains and socializing losses. However, despite this, they have still been unable to capture any value for their shareholders,” Guy said.

A new question arised – Which are the services provided by the banks, and can DeFi successfuly replace them?

To find a possible answer to that question, Guy spoke about an essay from a few months ago by Arthur Hayes, a former chief executive of BitMEX.

In that essay, Hayes explained how DeFi could effortlessly replicate savings accounts, trust services, and checking accounts, making its way into the daily lives of most people.

He also added that, though DeFi can provide loans, the sector is considerably over-collateralized. Therefore, banks have a tendency of doing a better job with loans despite their shortcomings.

However, Hayes added that if Ethereum can gain a considerable percentage of the five-year average earnings of banks and the big audit firms, it may skyrocket in value.

According to Hayes’ equations, if the Ethereum ecosystem captured at least 0.5% of traditional finance’s revenue, it would boost the ETH value to over $20,000.

Sawyer Alim
Sawyer is our team's tech specialist. He's constantly looking for new technologies to try them out and later present to our readers. Sawyer is just getting his start as a journalist, but has over 5 years experience at a tech company.