Ethereum: The Talk of the Town
The total market capitalisation of the crypto assets spiked to new highs at $1.1 Tr on Jan 10, 2021, it retraced ~17%, and in the next 12 days, the total market capitalization fell to $913 bn. However, as on Feb 3, 2021, the mcap has started gaining momentum and is currently hovering around $1.06 Tr. Bitcoin and Ethereum are one of the main driving forces as their prices have appreciated by ~12% and ~15% respectively in the past 7 days. The “Buy Crypto” keyword search is at an all-time high, exceptionally higher than early 2018, according to The Tie. It indicates that the crypto assets are gaining traction among the masses which is necessary to gain real-world adoption and establish itself as an alternative to the traditional financial system.
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Ethereum- Probable Propelling forces
Ethereum 2.0- With Ethereum 2.0 scheduled to be launched by the next year and to ensure the security of the network till it is transitioned to Beacon Chain, 9764 unique addresses have staked 2.4 M ETH worth of $3.79 Bn which fragments down to 2.13% of the total circulating supply being staked on the ETH 2 chain. Currently, the ETH ecosystem is yielding an impressive 9.3% APR coupled with the proposition that Ethereum has gained ~170% after the launch of Beacon Chain on Dec 1, 2020.
TVL Locked in ETH- ETH locked in DeFi protocols made its 90 days low as it decreased from 8.97 M to 6.61 M as on Jan 11, 2021. However, after hitting the low, it has started gaining momentum and is now worth $7.9 M at the time of writing. The data indicates that the users who do not want to stake their ETH in ETH 2.0 deposit contract, maybe because of the lockup period, are depositing their ETH in DeFi protocols for “yield” or earn a return in exchange for providing liquidity.
Transactions on ETH blockchain- As per the data analytics website intotheblock, ~1.27 M transactions occurred on the Ethereum blockchain while Bitinfocharts reports that ~$ 7.2 Bn worth of coins were transacted on Feb 2, 2021. Breakdown of the above stats reveals that each transaction was worth ~$ 5670 on an average. The rise in average value transacted on Ethereum blockchain represents that the Dapps built on its network (DEX, NFT, etc.) are gaining traction among the masses.
Conclusion
The data from intotheblock indicates that the total addresses with balance have increased at an astonishing pace from 34.68 M addresses to 52.44 M, that is an increase of ~51% in the trailing 12 months (TTM). With the current bull rally making headlines on the news channels, tweet volume surpassing 500K in January, for the first time in its history coupled with the futuristic potential Ethereum holds to revolutionise the traditional finance ecosystem, it has magnetised the retail segment and is the key factor that has driven its price to new highs.
As per Bybt.com, Open Interest (OI) for the 12/2/2021 option contract unravels that the probable range for ETH could be 1360- 1600 as the maximum OI is placed at these levels. Level of 1360 will be strong support (Put OI- 4.33 k ETH) followed by 1440 (Put OI- 1.4K ETH). To the higher side, 1600 will act as resistance as the Call OI is 3.85K ETH.
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