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Ethereum
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July 29, 2023

Ethereum Could Explode by Up to 1,556% in an AI-Powered Economy, Says Arthur Hayes – Here’s the Timeline

By Daily Hodl Staff

BitMEX co-founder Arthur Hayes says the price of Ethereum (ETH) stands to benefit immensely from artificial intelligence (AI) technology.

Painting a scenario where AI applications create decentralized autonomous organizations (DAOs) in order to execute smart contracts, Hayes says in a new blog post that Ethereum is the logical base of such a scenario since it is the most widely used decentralized virtual machine.

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According to Hayes, the tokens issued by the AI DAOs will trade on decentralized exchanges (DEXs), and mostly those built on top of Ethereum.

A DEX is naturally suited to support the trading of any type of equity, debt, utility, participation, etc. token issued by an AI-powered DAO…

DAOs will fundraise and issue tokens on-chain. A plethora of new DAO tokens will trade on DEXs.

As DAOs capture more economic value than companies, DEXs will trade more than traditional CEXs.

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I believe the largest driver of on-chain activity will be an explosion of trading volume on DEXs hosted on Ethereum.”

Source: Arthur Hayes

The BitMEX founder says that if the above scenario plays out as he envisions, Ethereum could run up to 1,556%, from its current price of $1,875 to hit $31,063 if the DEX trading volumes were to reach 20% of traditional stock exchange volumes recorded in 2022.

Hayes says Ethereum could reach a five-figure price about half a decade from now.

“Given the market is forward-looking, I want to guestimate the percentage that will be reached 5 years into the future. I am not concerned about getting this number exactly right. I want to be directionally correct and profit as the narrative shifts from “won’t happen” to “might happen”.

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