As some participants in the crypto community point out, the Ethereum blockchain is actively signaling its readiness to launch a new bull market.
As long as bitcoin continues to stall under the closest resistance and is possibly preparing for a protracted consolidation period, the situation in the Ethereum segment may begin to develop in a completely different way. Judging by a number of improving key features of the Ethereum network, this cryptocurrency may soon launch a new bull market.
In particular, the head of DTC Capital, Spencer Nun [@spencernoon], believes that he shared a long post with his readers on Twitter in which he examined several charts and parameters that promise bright prospects for the Ethereum network.
- So, he primarily highlighted the increase in the number of active ETH addresses. The average 90-day indicator of such daily active addresses reached 380 thousand, which became a 2-year high. The other day, the analytical resource Glassnode also reported that in general the number of active ETH addresses with a non-zero balance is now about 40 million, which is a 350% increase compared to the beginning of 2018, when the currency marked a historic maximum.
- The next important characteristic is gas, the fuel source for the Ethereum network. This figure also reached record levels (over 60 million daily), which also reflects the unprecedented interest of users in the network.
- Another historic high was set by the indicator of the issue of stablecoins on the Ethereum network. The volume of emissions exceeded $ 7 billion, including almost $ 4 billion issued over the past 4 months.
- Next, Nun drew attention to the aspect that members of the crypto community have long been talking about. An important trump card of Ethereum at the moment is decentralized finance (or DeFi), which are one of the main advantages of this blockchain over competitors. According to Nun, in just 5 months, the number of DeFi users increased from 90 thousand to 178 thousand, demonstrating an almost vertical rise in the indicator.
- In addition, since May 1, $ 25 million WBTC (Wrapped Bitcoin) - ERC20 tokens, which are stablecoins secured with bitcoin and tied to its exchange rate in a 1: 1 ratio, have been issued on the network. This is an indication that Ethereum is becoming the economic space for all assets, including its main competitor, the BTC.
- Nun also noted an increase in institutional investment in ETH in recent weeks, as evidenced by funds such as Grayscales.
- Finally, Nun mentioned the average number of transactions on the Ethereum network. It has grown to 850 thousand. per day from the level of 580 thousand in early January. For comparison, this is three times the number of daily transactions in the Bitcoin network.
Thus, numerous fundamental factors are now favoring Ethereum, demonstrating that an increasing number of users find this blockchain useful and effective. Unfortunately for traders, the ETH rate is in no hurry to confirm this thesis.
Do you consider the Ethereum blockchain a dangerous competitor to bitcoin? Do you see its potential practical value? Share your opinion in the comments!