Ethereum is seeing a surge in the last two days, breaking past the $200 mark for the first time since August 20th. Here are some of the on-chain metrics and indicators pushing the leading smart contract platform upward.
Ethereum has been experiencing bullish momentum as of late primarily due to the positive indicators for the network adding up. As outlined by Spencer Noon (@spencernoon), here are some of the reasons for its most recent rise and why this is just the beginning.
5 Fundamental Reasons Why Ethereum Is Looking Stronger Than Ever
1. ETH Overtakes BTC in Transaction Fees
As of yesterday, ETH has been overtaking BTC in daily transaction fees. This indicates that demand for the network is on the rise.
1/10. $ETH price is surging today, crossing $200 for the first time since 8/20. Let’s have a look at the fundamental indicators and on-chain metrics driving this move.
2/10. Starting with the most bullish indicator. As @coinmetrics notes in their newsletter today, ETH is overtaking BTC in daily transaction fees. This suggests there is a strong demand for using Ethereum.
2. Total Gas Usage Is at All-Time High
Gas is the fuel of the Ethereum network and is currently being used at record highs. Today, Ethereum is using the most gas ever in its history. This means that it is doing more complex operations than ever before.
Yesterday, the Ethereum network processed the most activity in its history.
3. Hash rate Has Exploded in the Past 6 Months
After a tumultuous 2018, Ethereum’s hash rate is finally recovering. It has been climbing since April of this year which indicates that miners still feel bullish on ETH despite proof-of-stake coming out by 2021. Most importantly of all, it means the network is getting more and more secure.
3/10. Daily total gas usage is at ATHs. This means users are doing increasingly complex operations on the network.https://twitter.com/econoar/status/1173982084538363908?s=20 …
4/10. Over the last 6 months, hashrate continues to climb. This suggests miners are bullish on the price of ETH despite open questions about the future of its mining (e.g. ProgPow, ETH 2.0).
4. Active Addresses Are at Their 10-Month High
After a slump which bottomed out around the end of 2018, active ETH addresses are once again on the rise. We recently hit a 10-month high which means that network activity is growing.
6/10. Stablecoin AUM stands at $2.9 billion. With Tether usage on Ethereum ballooning, AUM should cross $3 billion in a matter of days.
7/10. Active addresses on Ethereum are reaching a 10-month high. (h/t @BinanceResearch)
5. More Assets Are Being Tokenized on Ethereum Than Ever Before
This past week was an important one for Ethereum. The banking giant Santander announced it had just issued and settled a $20M bond on the Ethereum blockchain recently. The startup Harbor also announced only two days ago that it had tokenized the shares of four real estate funds valued at around $100M.
In short, real-world assets are moving to Ethereum in record numbers.
Bullish Momentum Will Likely Continue
Fundamental indicators don’t lie. The fact that active addresses are rising, gas usage is up, and decentralized finance through tokenizing real-world assets is becoming realized, means there’s a case to be made that Ethereum is in the best position it’s ever been.
It remains to be seen how Ethereum will respond as we get closer and closer to Bitcoin’s halving event in 2020. By all estimates, it seems that the leading smart contract platform is positioning itself for a stupendous ‘comeback’ in 2020.