Ethereum (ETH) is poised for significant growth, with a price target of $10,000 supported by its deflationary supply and expanding role in decentralized finance (DeFi), stablecoins, and developer activity, according to Nick Tomaino, founder of venture capital firm 1confirmation.
In a recent post on X, Tomaino argued that Ethereum’s scarcity narrative is “equally strong” as Bitcoin’s, even if less apparent on the surface. A former Coinbase business developer and marketing lead (2013–2016), Tomaino highlighted Ethereum’s enduring appeal to developers and its dominance as a hub for blockchain innovation.
Key Drivers of Ethereum’s Growth
Tomaino underscored Ethereum’s developer ecosystem, pointing to its seven-year track record of attracting top talent. He cited the proliferation of layer-2 solutions, such as Coinbase’s Base, as examples of Ethereum’s scalability and continued relevance. Furthermore, he noted that Ethereum serves as a “sandbox” for blockchain innovations, with many successful use cases originating on Ethereum before being adopted by competing networks.
Deflationary Supply and ETFs
Ethereum’s transition to a proof-of-stake (PoS) model and the deflationary mechanics introduced by the EIP-1559 upgrade have bolstered its scarcity narrative. Tomaino believes this dynamic, coupled with increasing staking adoption, will enhance Ethereum’s appeal as a long-term store of value.
He also pointed to the growing interest in spot Ethereum ETFs, which saw sluggish initial inflows but gained momentum toward the end of 2024. Tomaino expects ETFs to further promote staking and amplify ETH’s utility in layer-2 and layer-3 applications, driving adoption of the token as a medium of exchange.
Price and Outlook
As of now, Ethereum is trading at $3,329, down 32% from its all-time high of nearly $4,900 in November 2021. However, Tomaino remains bullish, citing Ethereum’s strong fundamentals and sustained demand from DeFi and stablecoin sectors as critical factors that could propel ETH toward the $10,000 mark.
With a robust developer base, deflationary supply, and expanding use cases, Ethereum continues to solidify its position as a cornerstone of the blockchain ecosystem, potentially rivaling Bitcoin’s status in the long term.
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