Key Points
Nick Tomaino, founder of 1confirmation, believes Ethereum (ETH)‘s growth and deflationary supply could propel its price beyond $10,000.
He attributes this potential to Ethereum’s stronghold in decentralized finance, stablecoins, and the developer community.
Ethereum’s Scarcity Narrative
Tomaino, who previously held roles at Coinbase between 2013 and 2016, recently stated that Ethereum’s scarcity narrative is just as robust as Bitcoin’s.
He notes that while Bitcoin’s narrative of being digital gold is straightforward, Ethereum’s narrative is more complex but equally powerful in practice.
He further mentions that the most skilled crypto developers continue to build on Ethereum, as they have been doing for over seven years.
Tomaino highlights layer-2 solutions like Coinbase’s Base, which is built on Ethereum, as an example.
He also underscores Ethereum’s role as a platform for innovation, with successful use cases often originating on Ethereum before being replicated on other chains.
Tomaino also comments on Ethereum’s dominance in the use cases of NFTs and stablecoins.
He mentions that while other chains often copy successful use cases from Ethereum, Ethereum’s dominance in these areas is undeniable.
Despite a slow start for spot Ethereum ETFs, Tomaino anticipates an increase in inflows in 2025.
He predicts that ETFs will enhance staking adoption and layer-2 and layer-3 apps will increase Ethereum’s usage as a form of money.
At the time of reporting, Ethereum (ETH) was trading at $3,329, a 32% drop from its all-time high of nearly $4,900 in November 2021.