During his recent appearance on CNBC “Fast Money,” trader Brian Kelly laid out his bullish thesis for Ethereum, the second-largest cryptocurrency.
He points to the fact that the upcoming “London” hard fork—which contains much-talked-about EIP 1559—is going to dramatically change Ethereum’s monetary policy.
As Bitcoin breaks back above $40K @BKBrianKelly breaks down what's behind the big bounce $BTC pic.twitter.com/38mDxEg54n
— CNBC's Fast Money (@CNBCFastMoney) July 26, 2021
After routinely facing criticism for having unlimited supply, it will now turn into a deflationary currency, which will help to fuel the “store of value” narrative.
Kelly notes that having capped supply is “generally good” for price:You’ve got everything in the world that is built on Ethereum. You’ve got DeFi, NFTs, all of that. Plus, a new monetary policy coming up. Plus, potentially, tailwinds from just adoption of this as an asset class. And to me, that was pretty good for Ethereum.
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Last week, CNBC’s eminent stockpicker Jim Cramer revealed that he was still holding Ethereum, describing it as the “pied piper” of crypto.