NFTs on the Blockchain: Exploring the Banana Zone
1 min read
Last month, Real Vision cofounder and CEO Raoul Pal said crypto seemed to be on the verge of the banana zone, where majors and altcoins rally hard as new all-time highs (ATHs) are reached.
That prospect of the, ahem, banana zone came further into focus this week as the ETH price surged to +$3,700 on the news that the U.S. Securities and Exchange Commission (SEC) seems prepared to approve its first ETH ETFs.
With ETH now within 24% of its previous record of $4,878, and having seen $75B in inflows yesterday on the ETF excitement alone, it’s no stretch to assume that an official ETF approval in the coming days could rocket ETH through its previous ATH and into price discovery mode.
Why? As DCinvestor recently pointed out, a supply-side crisis seems brewing around ETH.
Imagine the buy pressure of major Wall Street inflows, which could be considerable, to say the least.
Then imagine that pressure against how Ethereum only issues ~2.5k ETH per day currently, and at times that issuance can be entirely offset by fee burns, and how there is a ton of ETH essentially locked away in staking and across various apps and Layer 2s (L2s) right now.
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