Odaily Frontline｜The transfer value on the Ethereum chain is lower than the level of Q4 in 2018. What is the impact?

余YU

读者

2019-11-28 14:06 (UTC+8)

This article is about 1069 words, reading the full article takes about 2 minutes

It is estimated that ETH needs about $1.5-1.7 million per day to maintain the current price level.

AI Summary

Expand

It is estimated that ETH needs about $1.5-1.7 million per day to maintain the current price level.

This article comes fromCoinGape, original author: Nivesh Rustgi

Odaily Translator |

according to

according topreviously reported, Coinmetrics recently noted that Ethereum’s NVTV ratio (network value/token value ratio) is near its all-time low. A lower NVTV ratio indicates network growth. This growth is largely driven by the growth of ERC-20 and ERC-721 tokens.

image description

Image credit: CoinGape, While the increase in the number of transactions can be attributed to non-value tokens, there is still less value transferred. Even so, it has also declined since October 2019.

However, despite the increase in the number of transactions, the value transferred on the Ethereum chain (denominated in USD) is lower than it was in the fourth quarter of 2018, when the price of ETH fell to around $80. The chart shows a sizeable drop since October.

Additionally, ERC-20 tokens currently include all major stablecoins (Tether, USDC, TUSD), exchange tokens (BNB, Huobi Token, Okex Coin, Leo), including utility tokens like BAT.Samson MowRecently, Blockstream Chief Strategy Officer

The daily liquidity required to balance the Bitcoin supply is calculated. According to estimates, Bitcoin's supply needs to be around $13 million to $16 million per day to maintain a stable price.

Likewise, at current prices, ETH would need around $1.5-1.7 million per day to maintain current price levels. However, the value of transactions on the Ethereum chain is actually lower, and it is unlikely to obtain the (daily liquidity) amount needed to balance the supply.

image description

Image credit: CoinGape, number of unique addresses for ETH

However, the number of ETH addresses has continued to grow. Although this data can be misleading. However, it definitely increases the network effect of Ethereum.

Another major factor affecting the price is the Ethereum 2.0 project risk faced by the team. There is a lot of uncertainty surrounding network performance, staking rewards, and the outlook for a shifting regulator. Currently, the US SEC believes that Ethereum is a commodity. However, it may become a security as it switches to a PoS network.

secondary title