Crypto venture capitalist Spencer Noon is forecasting an Ethereum rally that will launch the asset well above its new all-time high.

The general partner at crypto venture capitalist firm Variant says that the number of users and the amount of capital deployed in decentralized finance (DeFi), which Noon calls Ethereum’s “biggest use case,” is a bullish sign.

“There are now more than 1.25 million DeFi users, a figure that continues its parabolic uptrend – a sign that Ethereum’s biggest use case is on a path towards product-market fit.

There is now more than $25 billion dollars locked in DeFi, with 21 different projects having more than $100M TVL (total value locked) – a sign that the ecosystem is maturing rapidly and becoming institutional-grade.

More than $20 billion has been deposited into lending protocols, with outstanding loans close to $4.5 billion – a sign that DeFi lending is becoming more battle-tested.”

Noon points out that the rapid growth of monthly volumes on decentralized exchanges (DEX) has reached levels that now parallel those of the centralized finance (CeFi) sector.

“Monthly DEX volume stands at more than $30 billion, up ~50x year-over-year – a sector where DeFi is starting to rival CeFi.”

Noon goes on to list some of the other reasons he is bullish on the number one smart contract platform, including the increasing amount of ETH leaving exchanges, the growing number of daily active ETH addresses and the untapped capital waiting on the sidelines in the pockets of large investors who have yet to enter the decentralized game.

“ETH is steadily flowing out of exchanges, including more than 530,000 on one day last week (worth ~$740 million) – a telltale sign of accumulation.

Ethereum has nearly 550,000 daily active addresses (90-day MA) – a figure that has doubled YTD and now sits comfortably at ATHs too.

The number of large ETH transactions (>$100k) is 7x smaller than during its 2018 ATHs – a sign that whales and institutions still haven’t entered the game.”

Ethereum is currently down 4.25% on the week, performing well compared to Bitcoin which is down 10.19% on the week, according to CoinMarketCap.

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