These 5 Signs That Ethereum’s Bull Run Is Coming?
Editor's Note: This article comes fromCrypto Valley Live (ID: cryptovalley), Author: Lucas Campbell, translation: Liam, reproduced by Odaily with permission.
Editor's Note: This article comes from
Crypto Valley Live (ID: cryptovalley)
Crypto Valley Live (ID: cryptovalley)
, Author: Lucas Campbell, translation: Liam, reproduced by Odaily with permission.
ETH Price: $241.2
ETH to BTC price: 0.025029BTC
Amount of ETH used in DeFi: 2.48 million (2.23% of circulating supply)
ETH network dominance rate*: 52.37%
7-day trend: $244.99 / $250.75 / $234.93 / $241.2
The price of ETH has traded sideways in recent weeks, even though Ethereum’s fundamental metrics have never looked better. This article will take a step back and analyze why many people think that Ethereum is about to usher in a bull market trend.
（Source: etherscan.io）
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1. Ethereum is growing faster than the early Internet
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The growth of the ETH network has also outpaced the early internet adoption. According to Internet World Stats, the Internet only had 16 million users in 6 years.
When digging further into this data and considering only Ethereum addresses with balances, the same rapid growth trend can still be observed: over 40 million addresses at a time when the price of Ethereum was well below its all-time high.
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2. Daily Transaction Fees Exceed Bitcoin
When it comes to blockchain networks, one of the most touted metrics is the amount of fees paid to miners. In general, it is an important metric for determining network demand as a settlement layer for value transfers. While Bitcoin has dominated this metric since its inception, Ethereum recently surpassed Bitcoin in daily transaction fees (just under $500,000), compared to $308,000 on the same day
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3. The daily miner fee (Gas) reached a record high
As mentioned above, the demand for block space and the fees paid for it are key indicators of a network’s effectiveness as a settlement layer. With daily miner fees at an all-time high, this gives another strong signal of the value of the ETH asset. Every time a token is transferred, or a MakerDAO library is created, or a Uniswap and DAO vote on a proposal takes place, some ETH is needed to push the network to execute those transactions.
The miner fees consumed by the network in one day reached a maximum value of 60 million (equivalent to approximately 426,000 ETH). To that end, new highs in mining fees demonstrate a growing need to use Ethereum for economic activity (and more).
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If you've been following the Ethereum ecosystem in recent months, you're probably well aware of the rise of crypto dollars (also known as stablecoins) on Ethereum. As far as the current situation is concerned, stablecoins have accumulated about $10 billion in value on Ethereum, accounting for about 37% of Ethereum's current market value.
This trend does not appear to be slowing down as we are now seeing USDT transactions on Ethereum on par with Bitcoin transactions. While Ethereum surpassing Bitcoin in transaction count is old news (primarily due to Ethereum’s ability to execute more complex transactions), single tokenized assets on Ethereum are competing with the largest assets by market capitalization in daily transactions.
While this metric has no direct impact on the price of ETH, it shows the fundamental value proposition of Ethereum as a settlement layer.
5. Ethereum’s DeFi Total Value Locked (TVL) surpassed $1 billion for the second time this year.
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As highlighted earlier this week, Ethereum’s DeFi hit $1 billion in total value locked (TVL) for the second time this year. While this milestone was achieved with less ETH locked, the trust-minimizing nature of ETH remains critical to the long-term success of Open Finance.
DeFi protocols also present some interesting opportunities. MakerDAO currently offers 0% leverage on ETH collateral, which could drive demand for ETH up. Because of Black Thursday and the global epidemic, Maker has gradually restored the trust of the DeFi community.
