An fascinating fact worth learning about Ethereum while waiting for the latest ATH

Spread the love

Although at press time Ethereum’s price was going to be parabolic, it would appear that Ethereum’s regular transaction rate was also going to be parabolic, according to Messari’s Crypto maps. In reality, the world’s second-largest blockchain is now paying more than $12 billion in regular transactions. That’s $3 billion more than Bitcoin to bring that amount into context.

This is also a critical statistic, provided that the regular transaction volume is the top indicator for determining the status of Ethereum’s price surge, even though the price trend is close to Bitcoin due to the comparatively strong similarity between the two currencies in the present trading cycle.

ETH's transaction volume is flying off charts

Source: Twitter

Much as Ethereum’s price rally has DeFi’s support for rising network fees in October 2020, DeFi’s new price rally is backed by increased transaction volume and network fees.

The fact that Bitcoin’s price surge has low volatility and the crypto asset varies between $34,000 and $38,000 may have played a part in this as the course of investment flow has also shifted. This may be illustrated by the fact that compared to Bitcoin’s 5 percent weekly price rise, Ethereum’s price increased by more than 21.91 percent this week.

RECOMMENDED READ:  New proposal could allow holders of DOGE,XRP, LTC to create ‘stable tokens’ on Flare soon

Still, there are legitimate worries regarding the growing number of transactions, since they may hurt actual acceptance and use in the long run. However, even though the price of the cryptocurrency goes on a price discovery spree after reaching the current ATH, there is a risk that rising network fees will lead to a decrease in the number of transactions.

It should be remembered, though, that climbing as high as it did on price charts alone is a feat for Ethereum, particularly in the light of Bitcoin’s recent volatility.

From being the basic currency for ICOs to vertical expansion, Ethereum has been more important than Bitcoin in many contexts and organizations, and retailers may have noticed the pattern early on. While the investment influx in Bitcoin is mainly from institutions, the same is not so for Ethereum, as there are more merchants purchasing Ethereum and creating interest for on-site exchanges.

Ergo, what lies ahead for Ethereum depends on open interest and the number of trades on derivative markets. However, based on the ETH Options Volume Map, the Options Volume has declined by 63% since the beginning of January 2021 and the current price rally may face opposition or reversal if the volume continues to decline.

RECOMMENDED READ:  Mirror Trading International calls for probe into South African multi-level marketing scheme of Bitcoin

What does this mean? Well, this means that it may lead to a further price decline and, amid growing popularity and investment traffic to DeFi, it may be a struggle for Ethereum to jump back from a price correction at this stage in the trading cycle, new ATH or not.

 

 335 Interactions,  2 today

READ ALSO:
Canadian bank wants to announce a dollar-backed digital currency ‘in the coming months’

Stablecorp CEO Jean Desgagne said VersaBank's digital currency was intended to provide an alternative to crypto market uncertainty and security Read more

Oxygen DeFi project get news $40m investment by Alameda

Alameda Research led a $40 million investment round in Oxygen, a DeFi Prime Brokerage Protocol based in Solana. Alameda Research Read more

Augur, Dogecoin, Monero Price Movement Analysis for 24th February 2021

At press time, the famous privacy coin Monero stabilized on the charts and saw a rise above the $230-level at Read more

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact Us

%d bloggers like this: