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Ethereum gearing up to launch a new bull market?

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Ethereum: Gearing up for another weekend rally?

Ethereum gearing up to launch a new bull market?

Ethereum prepares to launch a new bull market?
CONTENT

  • Many fundamental factors promise bullish prospects for the Ethereum network.

  • The number of active addresses on the network has grown to a 2-year high.

  • Gas use in the network has renewed its historical maximum.

Ethereum gearing up to launch a new bull market?

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As some members of the crypto community point out, the Ethereum blockchain is actively signaling its readiness to launch a new bull market..

While Bitcoin continues to slip under the immediate resistance and, possibly, preparing for a prolonged period of consolidation, the situation in the Ethereum segment may begin to develop in a completely different way. Based on a number of improving key characteristics of the Ethereum network, this cryptocurrency may soon launch a new bull market..

In particular, this is the opinion of the head of DTC Capital Spencer Noon [@spencernoon], who shared with his readers on Twitter a long post in which he considered several charts and parameters that promise bright prospects for the Ethereum network..

Ethereum gearing up to launch a new bull market?

  • So, he first of all highlighted the growth in the number active ETH addresses. The average 90-day rate of such daily active addresses reached 380,000, which was a 2-year high. Recently, 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.This is an increase of 350% compared to the beginning of 2018, when the currency marked a historical maximum.
  • The next important characteristic is gas, fuel source for the Ethereum network. This indicator also reached record values ​​(over 60 million daily), which also reflects the unprecedented interest of users in the network..
  • Another all-time high was set by the Ethereum stablecoin issuance rate. Issue volume exceeded $ 7 billion, including almost $ 4 billion issued in the last 4 months.
  • Ethereum gearing up to launch a new bull market?
  • Next, Noon drew attention to an aspect that members of the crypto community have been talking about for a long time. An important trump card of Ethereum at the moment is decentralized finance (or DeFiDecentralized finance (DeFi) is a financial services built on blockchain technology that offer users access to an open, efficient and … More), which are some of the main advantages of this blockchain over competitors. According to Noon, in just 5 months, the number of DeFi users grew from 90 thousand to 178 thousand, demonstrating an almost vertical rise in the indicator..
  • In addition, since May 1, the network has issued $ 25 million WBTC (Wrapped Bitcoin) – ERC20 tokens, which are stablecoins backed by Bitcoin and tied to its rate in a 1: 1 ratio. This is an indication that Ethereum is becoming an economic space for all assets, including its main competitor – BTC.
  • Nun also noted an increase in the last weeks of inflow institutional investment in ETH, as evidenced by data from funds such as Grayscales. Earlier, the editors of BeInCrypto have already reported on the growing interest of Wall Street in the Ethereum blockchain as the largest platform for conducting settlement transactions..
  • Finally, Nun mentioned the mean number of transactions on the Ethereum network. It grew to 850 thousand. per day from the level of 580 thousand in early January. In comparison, this is three times the number of daily transactions on the bitcoin network..

Thus, numerous fundamental factors are now favoring Ethereum, demonstrating that an increasing number of users find this blockchain useful and efficient. Unfortunately for traders, the ETH rate is in no hurry to confirm this thesis..

Do you consider the Ethereum blockchain to be a dangerous competitor to Bitcoin? Do you see its potential practical value? Share your opinion in the comments and join the discussion in our Telegram channel!

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