below but i do think it's valuable to take a look at how ethereum's performed in 2021 and we can then speculate on what's going to happen in 2022 ready let's do this so if we could only use one chart to sum up ethereum in 2021 it would probably be this the transaction volume which measures the usage how much volume has actually been put through ethereum and in white this is ethereum's price and we can see we had this huge run-up in may where it peaked out above four thousand dollars this was an epic run as it started around two thousand dollars and then in a space of about one month it had doubled we then had a nice crash but it's since recovered and it's been a bit choppy over the last couple of weeks but it's sitting around the 4 000 mark and in blue this is the daily transactions so it's doing about 20 billion dollars every single day apart from the peak here we shot up and did over 160 billion in just one day so if we add up all these daily transactions we get for the year five trillion dollars so i would say
ethereum has had an epic year as this is some serious volume and just to put this in perspective let's take a look at some of the ethereum killers coming through so this is for solana but this also could be avalanche or terra as they didn't do much for the first half of the year then they've really taken off but to put things in perspective for solana and just to say i am a fan of solana so not dumping on them but they have done 380 billion and compare this to ethereum's 5trillion so for me ethereum still is playing in a whole different league and an even better way to look at this is through this picture so this is the gross value locked of smart contract platforms and here are the big names right now we've got ethereum we've got binance smart chain and then the new up and coming ones terra solana and avalanche so here we have ethereum and you can see it's had an epic year in second place is bainan smartchain and these are the new up and coming ones terra solana and avalanche but this clearly shows that ethereum is in a whole different league now yes these are
going to be some great bets for 2022 and they could from a percentage basis outperform ethereum but it does come with more risk and let's quickly talk about the elephant in the room and this would be ethereum's high gas fees obviously it's ethereum's biggest criticism right now but there is something really important to point out now in an early video i did point out this and this is the transaction volume for d5 as d5 is one of the biggest use cases right now but this also could benfts that are selling for millions of dollars apiece the latest data was q2 2021 and when it comes to the volumegoing through by far the biggest is coming from the large institutions then next is this one the professional investors followed by the institutional investors then we have the large retail and then this tiny little slither is most people watching this video and myself the small retail investor nowwhen it comes to the high gas fee issue do you hear any of these companies complaining no they are ramming through the volume and making money all of the noise all of the complaints are coming
from this tiny little slither here and remember in 2022 we are going to be getting ethereum 2.0 and sharding and let's not forget the layer 2s like polygon so for me ethereum's high gas fee is not a major issue and finishing up with the growth of the overall network so obviously over the last few years ethereum seem excellent
growth this is the most recent data and it's still growing at a terrific rate in fact from the beginning of the year this is an excellent growth chart so again to me this shows that there's no major problems with ethereum i would be very concerned if this chart was beginning to level out but as of right now going into 2022 ethereum is looking really really
strong on to the big price predictions for 2022. first up from the stock to flow model by plan b as this is a great chart showing the history of crypto through bitcoin and these very important halving cycles every four years as in 2022 we have a very important event to navigate because if history repeats we get these big cycle blow-off tops which will be due at some point in 2022 now just to clarify plan b's latest predictions where they didn't come true was based off his floor model and not stock to flow stock to flow still is alive and well so what is stock to flow predicting well it predicts that bitcoin is going to peak out around 288 and this is going to be about march time so a huge run coming that's peaking out
around march i have heard other commentators saying that the cycle could be lasting until about mid-year and when it comes to ethereum if it grows at the same percentage rate as bitcoin this would give a price of 23 000 but remember ethereum has outperformed bitcoin every single year so if we add a small multiplier this could go as high as say thirty thousand dollars so this is price prediction number one
and then number two is from rao pal and global macro investor and he basically showed that in white this is bitcoin's growth from 2011 to 2019 which you may have now probably seen and it was showing that ethereum was growing at the same rate in fact it was really correlated to what bitcoin had done before now we've had some more growth
and we've had this most recent pullback but if ethereum continues again this is predicting that ethereum would get to over 20 000 and raoul believes that ethereum will also blast by this mark so that is price prediction number two and both pointing past twenty thousand dollars so if ethereum does what it did this year then it would go past 20 000 but i do want to talk about some key points first up the four-year bitcoin cycle what is going to make 2022 so interesting and difficult for investors is bitcoin's four-year halving cycle as if history repeats we will get this huge run-up and blow off top followed by a one-to-two year crypto winter and if ethereum does hit these big numbers like twenty thousand dollars it would likely crash down even harder so we need a plan for that next up diminishing returns and in general the larger something grows the harder it is to move the price unfortunately things can't just keep growing at 400 percent the math doesn't work so i would rather be conservative and expect lower returns so if ethereum did 450 this year then maybe 100 or 200 percent next year would be more realistic and lastly if ethereum does hit 20 000 or above it will likely be for a very short period of time take a look at the ethereum chart again but this time linear not logarithmic and remember this when you hit a top it will likely just be for a very short period of time it won't be staying there so remember this with all price predictions if the big numbers get hit it will likely be for a very short period of time so plan accordingly i will be doing a full video on my crypto strategy for 2022 over the next week or two as navigating a potential cycle top and crypto winter could be very challenging okay so as a quick spoiler to that video here is my plan in a nutshell i will be selling slash rebalancing in 20 increments as we set new highs i will be a buyer if and when bitcoin drops over 50 meaning that the altcoins would be 60 70 80 down and all other times i'm patiently holding through the 20 to 30 ups and downs similar to what we've been seeing over the last couple of weeks ultimately i like to win in either direction if ethereum does hit these big highs then great i'll be selling and diversifying all along the way and if there is a big crash then i'll be loading up as these have historically been the very best times to buy and personally i won't be regularly buying and selling as most people lose in that game so there you are guys hope you enjoyed will ethereum blast pass 20 000 next year let me know what you think below for now just to say if you did enjoy anything in the video then drop a like and a big thank you to everyone who does if you haven't yet subscribed click below and join us got some great videos coming up but you don't want to miss okay cheers guys thanks for watching and i'll see you in the next video bye for now you
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Kindly tell me about BTC prediction
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