Ethereum has had three bullish fundamentals in the past week
Despite the over 100 percent recovery from the $ 88 low during the March surrender, Ethereum is still more than 85 percent below the all-time high it reached in late 2017. However, Ethereum could soon see a bullish continuation if three fundamental trends are implemented that could dramatically boost the demand for ETH and thus drive up prices.
Ryan Sean Adams, the founder of Mythos Capital, identified these trends, all of which happened within a week, in the tweet below.
Ethereum sees three massive news events boosting its bull case
ETH receives the first regulated futures market in the US : Ethereum received its first US CFTC regulated futures market last week when ErisX - a stock exchange supported by prominent players such as TD Ameritrade - launched its contracts last week. A leading cryptanalyst expects the introduction of ETH futures to lead to higher prices.
Reddit unveils the Ethereum-based token project : The leading online forum Reddit - one of the most visited sites on the Internet - introduced a new feature called "Community Points" last week. These are points based on an Ethereum testnet that gives millions of users access to special functions. Ultimately, the tokens will be migrated to Ethereum's main network.
Visa may be building a digital dollar system on Ethereum : Visa filed a patent on May 14 that outlines a process that would make fiat currency - be it dollars, yen, yuan, etc. - a blockchain asset. While the system appears somewhat theoretical, the patent mentioned using the Ethereum network. The multinational payment company that would install a payment rail in Ethereum could dramatically increase the demand for ETH and pump millions into the crypto space.
Crucial for Ethereum's network effects
Even if these developments may not have an immediate impact on the demand for ETH , they are crucial for the network effect . Mike Novogratz - founder of Galaxy Digital and former partner of Goldman Sachs - said the following about the network effect of blockchain to Ethereum co-founder Joseph Lubin and Angie Lau of Forkast.news:
ONE OF THE THINGS FOR THE ETHEREUM STORY IS TO RATE THE NETWORK AS WE DO ON FACEBOOK - THE MORE NETWORK EFFECTS YOU GET, [THE BETTER] ...