Ethereum Breaks Free and makes a new ATH

Featured: Ethereum, layer 2, Dapps, transactions, non-zero balance addresses

With the advent of Ethereum 2.0 scheduled to be launched by the next year- and the efficacy of its underpinned infrastructure serving as the backbone for the Layer 2 solutions to build their projects on top of it- Ethereum has established itself as a go-to infrastructure provider. Ethereum is laying the foundation for the traditional industries such as insurance, financial trades & services, credit authorization, legal processes, etc so that protocols and tokens can leverage its smart contracts functionality to bring in effectiveness and efficiency in their day to day functioning.

Follow TradeDog for more insights.

Ethereum- Scratching its analytics

The volume of Transactions- Ethereum has surpassed the daily volume of transactions on its network by 28% as compared to Bitcoin, according to crypto analytics firm Messari. The Ethereum network now handles $12 billion in transactions daily that is $3 billion more than the transactions on the Bitcoin network. The rise in transactions on Ethereum blockchain represents that the Dapps built on its network are gaining traction from the community, and the people are believing in its potential to bring a paradigm shift in the way the contemporary economies function.

Google Trends- The interest from the retail investors has risen by multi-folds due to its parabolic bull move of ~265% in the past 90 days. The above-stated fact can also be validated from the surge in Google searches thrashing its 2017–18 all-time high levels to hit the peak at 100.

Non- zero balance addresses- Another data signalling the growing interest of retail investors are wallets with non-zero balance recently surpassed 52.5 M while the BTC with non zero balance currently stands at 33.5 M, that is, ~36% less than that of Ethereum as Glassnode. Interpretation of the data suggests that the crypto community foresees value in the Ethereum ecosystem, supports and trusts its vision to provide its infrastructure to build Dapps while on the other hand, Eth 2.0 will make the network more scalable and secure.

All Time Highers- A graphical representation which depicts that the people have bought Ethereum within 20% range from the ATH, that is ($1152- $1440), illustrates that from Jan 6, addresses buying Ethereum have been on a cosmic ride. The addresses that have bought ETH in the stated territory have increased by ~193% from 381.28 K addresses on Jan 6 to 1.12 M addresses as on Jan 19. The growing retail participation indicates that people have visualised the Ethereum to break its ATH and sail through the unknown waters.

Source: Into the block

Conclusion

Ethereum is the leading infrastructure provider for building Dapps on Ethereum blockchain and 1.7K Dapps have been built on it as of today. The total volume of Dapps on Ethereum is ~$81.77B, and it manifests the dominance of the Ethereum blockchain in the crypto ecosystem as it has emerged as a go-to infrastructure provider for Dapps developers to build Dapps on top of it.

The rise in Total Valued Locked (TVL) in Defi protocols from $11.7bn to $24.8bn coupled with rising traffic on its network has caused congestion on the Ethereum network, thereby increasing the average Transaction fee that reached ~$16.5 on Jan 11. This poses a potential challenge due to its scalability issue. However, with the implementation of Sharding and change of consensus mechanism to Proof of Stake (PoS) in Eth 2.0, Ethereum is expected to decrease its transaction cost substantially by scaling the transactions through its side chains.

With the price of Ethereum at the sidelines of ATH and the surge in the activity on the parameters stated above, it reflects that the retail community is expecting the ATH of 2018 to break away and the price of Ethereum to appreciate to all-time highs. Technically, bull market structure is still intact, and closing above its recent high of ~1350 can trigger a fresh wave of buying that could probably take ETH to new highs.

Sign up on TradeDog and follow it on social media channels for more market insights and reports.

We are an elite team of professional traders and analysts with substantial levels of experience investing in global markets across multiple asset classes.