According to Coin Bureau analyst Guy, Ethereum (ETH) could hit $20,000 with the emerging cryptocurrency industry.

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Guy thinks ETH has the potential to exceed $20,000. In a new video, the popular analyst says that decentralized finance (DeFi) and its ability to replicate traditional financial services without their drawbacks will be the catalyst that will push Ethereum up.

The analyst tells his 1.13 million YouTube subscribers that traditional finance is “completely replaceable.”

“Not surprisingly, banks have been performing pretty poorly over the past decade. From US banks to Chinese, Japanese and European banks, we’re seeing lousy performance from a once booming industry. Just try to imagine this: this is the industry that caused the 2008 financial crash. They developed the craft of customizing the gains and socializing the losses. However, they still failed to capture any value for their shareholders. The question then becomes: What services are these banks providing and can they be replicated in DeFi?”

To answer this question, the analyst points to an article penned in April by Arthur Hayes, the former CEO of derivatives exchange BitMEX. In his article, Hayes explains how DeFi can easily copy savings accounts, checking accounts, and trust services. That said, while DeFi can offer loans, the industry is overly collateralized, meaning banks tend to do a better job with loans despite their shortcomings.

Hayes states that if Ethereum can capture a percentage of the average five-year earnings of banks and four major audit firms, its value will skyrocket. Based on Hayes’ equations, if the Ethereum ecosystem manages to capture 0.5% of traditional finance income, it would be worth 10x and would be worth more than $20,000. Capturing 5% of traditional finance’s revenue would send it to $200,000.

The analyst claims that capturing 0.5% of traditional finance revenue is a reasonable expectation for DeFi:

“This realization is why institutional investors are overtaking it. This realization is why Goldman dived into Ethereum options before offering it in Bitcoin. Now, of course, much depends on future updates. Moving such fundamental upgrades forward on a network of more than $300 billion will not be an easy feat. But they are necessary.”