“We continue to believe Ethereum fundamentals are incredibly strong and think [ETH] represents the best risk/reward investment play in crypto.”
Aiming to offer a justification for this unprecedented five-figure price point, Fundstrat pointed to how network fees on the Ethereum blockchain continue to demand — citing this as evidence of the network’s popularity.
Fundstrat’s figures show that Etheruem fees reached $600 million in 2020, but over the first 17 days of 2021 alone, they were already at $180 million. When extrapolated to cover the whole of this year, analysts estimate that fees could reach a grand total of $3.9 billion.
ETH has managed to enjoy such levels of annual growth before. After bottoming out at lows of $97 in mid-March 2020, the world’s second-largest cryptocurrency surged by 657% in the eight-and-a-half months to Dec. 31, ending the year at $735.
According to CoinMarketCap data, ETH came within 58 cents of reaching a new all-time high beyond $1,432.88 on Tuesday. On some exchanges, such as Gemini, the crypto was trading at $1,440. Prices have cooled substantially since then, settling in at $1,235 at the time of writing on Thursday afternoon.