Arthur Hayes, the co-founder and former CEO of cryptocurrency exchange BitMEX, predicts that the price of Ethereum (ETH), the king of altcoins, will greatly benefit from artificial intelligence (AI) technology and rise by over 1,550%.
“Artificial Intelligence” Prediction for Ethereum
In his recent blog post, Hayes highlighted a scenario where artificial intelligence applications create decentralized autonomous organizations (DAOs) to execute smart contracts, stating that Ethereum’s position as the most widely used decentralized virtual machine provides a logical basis for such a scenario. According to Hayes, tokens issued by AI DAOs will be traded on decentralized exchanges (DEXs) and exchanges built primarily on Ethereum:
Naturally, a DEX would be suitable for trading any form of capital, debt, service, participation, etc. tokens issued by an AI-supported DAO. DAOs will raise funds and issue tokens on the blockchain. Numerous new DAO tokens will be traded on DEXs. As DAOs capture more economic value than traditional companies, DEXs will surpass centralized exchanges (CEXs) in terms of trading volume. I believe there will be an explosion in trading volume on Ethereum-hosted DEXs, making it the driving force behind on-chain activity.
According to current data, ETH is trading at $1,872 with a market cap of $226.32 billion, experiencing a 0.54% increase in the last 24 hours.
Hayes, the co-founder of BitMEX, stated that if his prediction comes true, with DEXs reaching 20% of the trading volume recorded on traditional exchanges in 2022, Ethereum could rise to $31,063, representing an increase of up to 1,556% from current prices.
Expecting the Prediction to Come True Within 5 Years
Furthermore, Hayes believes that the king of altcoins could reach a five-digit price level in approximately five years, stating, “Given that the market is forward-looking, I want to estimate the percentage reached in five years. The exact accuracy of this number doesn’t concern me. I want it to be directionally correct and not just a narrative.”
