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