On-Chain Data Analyst Willy Woo Says Ethereum Quietly Building Solid On-Chain Strength
Popular on-chain analyst Willy Woo says one under-the-radar metric suggests that ETH is gearing up for an impressive rise.
The founder of The Bitcoin Forecast tells his 818,400 Twitter followers that Ethereum’s supply shock fundamentals have yet to show up on the second-largest crypto’s price chart.
“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.”
Earlier this week, the analyst also discussed how Bitcoin (BTC) is in competition with gold as a hedge against inflation.
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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Author: Daily Hodl Staff
