Ethereum at crucial point, fundamentals indicate strong bullish trend
November 30, 2020 @ 17:21 +03:00
The upcoming week will host one of the most important events for Ethereum ever. On December 1st, the beginning of phase 0 of the Ethereum 2.0 will take place. The event could push ETH to new all-time highs and for now, analysts are highly bullish about it and the strong fundamentals it displays. At the time of publication, ETH is trading at $551 with gains of 7.74% in the last 24 hours. In the weekly and monthly charts, ETH presents gains of 0.34% and 42.51%, exceeding Bitcoin’s gains (34.71%) in the same period.
According to the director of the investment firm DTC Capital, Spencer Noon, there are 8 indicators that show that Ethereum has entered a bull market. The first is the number of daily active addresses for Ethereum which have doubled in one year to nearly 500,000, as shown below. In addition, the Ethereum blockchain has had one of its most important years in terms of fee revenue. Therefore, Noon rates it as the “most useful network in the world”. As the image below shows, the Ethereum blockchain has generated $2.9 billion in fees on an average of 7 days. Bitcoin only generated $1.2 billion in that period.
Noon also stated that on a daily average about 80 billion gas are spent in Ethereum. This figure has been rising since July 2017 and is currently at an all-time high. Other important metrics are that $16 billion in stablecoins have been issued on Ethereum with a “parabolic increase” since the beginning of 2020, and the number of DeFi users, which has touched 1 million. This is also reflected in the total value locked (TVL) in the DeFi protocols with an all-time high of $14 billion and almost $3 billion in BTC locked. Noon concludes:
DEXs on Ethereum have done $20B in volume over the last 30 days, bringing their combined total to $86B this year — a sign that DEXs can compete with the top centralized exchanges.
As reported by CNF, experts predict that the launch of Ethereum 2.0 will positively impact the price of ETH. This could happen if a huge amount of ETH is locked into the protocol resulting in a supply shock. With the growing demand for ETH from the DeFi sector and the use of the blockchain on the rise, the possibility seems increasingly real. As recently indicated by Ethereum’s inventor, Vitalik Buterin 775,232 ETH (152%) have been locked in the deposit contract.
Ethereum at crucial point, 8 fundamentals indicate strong bullish trend, Crypto-news-flash, Nov 30