Ethereum News

11 benchmarks in the market indicate that the price of Ethereum will continue to rise


Many analysts predict that the price of ether is on the verge of moving upwards in a quadrant direction, citing the growing growth of decentralized finance (DeFi) and the strengthening of the Ethereum Network Foundation Indicators.

To Report Coin Telegraph: As the price of Ethereum crosses its all-time high overnight and is rising to record another high, some market observers believe the digital currency could quickly break the $ 1,400 price range. .

The positive state of the fundamentals reinforces the hypothesis that ether may be slowly surpassing previous resistance levels around $ 1,400. Some analysts point to the Defy ecosystem in this regard, saying that the growing growth of this field could be one of the drivers of rising ether prices.

Yesterday (Tuesday), Spencer Noon, an analyst at Variant Investment Fund, named 11 key indicators that he said could signal the imminent start of Ethereum’s share price growth. In his analysis, Noon pointed to more than one million unique addresses that have interacted with Diffie protocols over the past eight months.

The 11 criteria show that we are still at the beginning of Ethereum price growth
Growth of unique defai wallets. Source: Don Analytics

He added that the monthly volume of decentralized exchange transactions is currently at its historic peak, exceeding $ 30 billion. He also says that more than $ 20 billion has been deposited in defy lending protocols, of which more than $ 4.5 billion is available to users in the form of outstanding loans.

“Apart from Difai, Ethereum is the top Blockchain network in terms of daily fees, which is at least 50% higher than the Bitcoin network,” Noon said. He also said that the number of daily ether addresses has doubled in the last 12 months, reaching a historic high of 550,000. In addition, approximately $ 20 billion of the stable coins on the market over the past year have been offered on the Ethereum network platform.

In another part of his analysis, Noon says that more than $ 25 billion is currently deposited in DIFA protocols, and 21 decentralized financial protocols currently each host at least $ 100 million in user deposits.

In a part of Noon’s tweet, we read:

1. Ethereum is still the number one digital currency industry in terms of fees paid (more than $ 7.25 million daily average); Which proves that this network is the most useful network in the world.

Ethereum Daily Fees
Total Ethereum Daily Fees

However, Noon notes that despite Ethereum’s strong fundamentals, the network’s more than $ 100,000 transactions are seven times lower than its January 2018 peak; Which, of course, makes it clear that institutional investors have not yet entered the Ethereum market.

Coinciding with the release of Nun tweets, Token Terminal, an analytics platform that uses traditional financial ratios such as price-to-earnings (P / E) to measure the digital currency market, tweeted that Ethereum had a price-to-sales ratio chart. This time is different from the previous times.

Ethereum Price Chart
Ethereum Price Chart

The chart shows that the ratio of the price of Ethereum to the commission produced by this network has reached its historic low, and this indicates that the price of ether is much lower than it should be. However, users have written in response to this claim that the use of metrics such as selling price for Ethereum is not very common and the amount of ether sales includes commissions collected by miners. Noon cites large transactions, hash rates and capital outflows from exchanges as other upward factors.

The Messari analytics platform also shared data showing that the daily volume of Ethereum transactions is 28% higher than the daily volume of Bitcoin network transactions.

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