The law explains how a system is sustained by the number of individuals in the system itself.
Analysts have studied the price correlation of Bitcoin and Ethereum and suggest that if the Metcalfe Law is followed, there is a great possibility that cryptomeda will reach $20,000, just as Bitcoin did in 2017.
One of the analysts who argue that Ethereum can repeat the success of Bitcoin and reach $20,000 is Raoul Pal, who used social networks to explain the Metcalfe Law.
For the analyst, the Metcalfe Law is manifesting itself in a really acceptable way between Ethereum and Bitcoin.
According to him, after examining the data related to the day Bitcoin reached 1 million addresses for the first time and applying them to Ethereum, he realized that there are chances of the blockchain platform reaching the same price record.
Metcalfe’s Law states that the effect of a network is proportional to the square of the number of connected users. In other words, the more users there are in the network, the more it will grow on its own.
The analyst published his analysis on twitter pointing out the great similarities between the price of Immediate Bitcoin and the price of Ethereum.
„No, it can’t be… the prices and price structure are identical in log terms too??? WTF? But BTC is the one truth…this cant be!“
Metcalfe and Ethereum Law
Another one who also believes in the Metcalfe Law and thinks that the price of Ethereum can reach 20 thousand dollars is DH Taylor from Seeking Alpha. He published a report where he highlights the size of the network, number of connections and price trajectory.
Taylor understands that the Law can be applied to the market of cryptomaps in general, although it was originally applied to telecommunications and the growth of social networks, such as Facebook.
„The more people integrate cryptomaps into their lives, the more cryptomaps are accepted and growth continues to push the price up,“ Taylor said.
The law is used as a way to explain how a system is sustained by the number of individuals in the system itself.
By looking at the size of the Ethereum network, looking at the number of connections and the price path, Metcalfe’s Law can be seen more than once.
Ethereum can be dethroned by other platforms
The price of Ethereum has already appreciated about 60% in 2021, in fact, part of this growth is due to the continuous development of decentralized finances (DeFI).
Of course there is no certainty that the price of Ethereum will continue to rise and will reach $20,000.
Alternative blockchain protocols, such as Polkadot, have also increased in value in recent days and may dethrone Ethereum, depending, of course, on the adoption and preference of the market itself.
Better to keep an eye on the number of users in the network.