Ethereum is Exploding and Analysts Say the Digital Currency Could Go This High

According to analysts, ethereum, the second largest cryptocurrency by market cap, could be hitting $10,500 one day.

The digital currency neared $1,440 on Tuesday of this week and one firm believes this could be the beginning of a 650% explosion.

Fundstrat Global Advisors’ cryptocurrency team issued an updated $10,500 price target for ether. This would mean a 650% upside.

Ether-powered Ethereum blockchain is fueling more real world applications like smart contracts, stablecoins pegged to the dollar, and the burgeoning decentralized finance space.

“We continue to believe Ethereum fundamentals are incredibly strong and think [ethereum] represents the best risk/reward investment play in crypto,” Fundstrat analysts wrote.

According to Fundstrat, Ethereum fees totaled $600 million in 2020 and through 17 days in 2021, fees have already topped $180 million, putting it on pace to achieve $3.9 billion this year.

With fees set to grow more than 500% in 2021 if trends hold, Fundstrat believes that ether appears vastly undervalued against cloud index peers.

“Trading at [a $150 billion] market cap, with $3.9 billion of estimated revenue, Ethereum offers a 39x price to sales ratio. However, Ethereum revenue trends are vastly outpacing the fast growing and high-flying conventional cloud stocks,” Fundstrat analysts wrote. “This compares against 21x price to sales multiple and 38% growth for the Bessemer Venture Partners (BVP) Emerging Cloud Index.”

Megan Kaspar, co-founder of the digital asset investment company Magnetic, remarked,

“There is a lot of value that is going to come out of this chain. It’s definitely being overlooked and it’s misunderstood by a lot of investors that are just getting their feet wet to understand the ecosystem as a whole.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.