Popular on-chain analyst Willy Woo says one under-the-radar metric suggests that ETH is gearing up for an impressive rise.
“While BTC is building up strength for ATH escape velocity, ETH is quietly building even stronger on-chain fundamentals not yet reflected in price.”
Supply shock is a metric that forecasts a crypto’s price by analyzing how many coins are in the hands of people with a history of selling versus those that don’t.
As Woo explains,
“At first glance you can see the Supply Shock model tracks price quite closely. A closer look shows Supply Shock LEADS price. This makes sense as we are tracking the intent of investors BEFORE their action to buy or sell.
For example if a long-term investor that historically accumulates moves enough coins to another entity (usually it’s to an exchange) all coins held by that investor become re-classified as liquid or highly liquid as the intent of the investor is now considered to have changed.”
Today he expanded upon the idea in a tweet suggesting that decentralized finance (DeFi) will compete against the traditional banking sector for market share.
“1) Valuation of the banking sector: $7.3T
2) Valuation of inflation hedges (store of value assets): approx $500T
DeFi is competing for (1). Bitcoin is competing for (2).”
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