According to researchers, Ethereum’s daily transaction volume is becoming “parabolic”. This trend supports the short to medium term bull fall in ETH, which Bitcoin has outperformed in the past few days.
Ryan Watkins, a researcher at Messari, said:
“Ethereum’s daily transaction volume is becoming parabolic. It now processes $ 12 billion worth of transactions every day – $ 3 billion more than Bitcoin. Imagine if you weren’t a bullish ETH. “
The rapid growth of the Ethereum blockchain network is mainly due to the exponential expansion of the DeFi market.
DeFi continues to levy Ethereum
DeFi has many subsectors within the industry. There are credit protocols like Aave, AMMs (Automated Market Makers) like SushiSwap and decentralized futures exchanges like Perpetual Protocol.
DeFi protocols, especially decentralized exchanges, are hundreds of millions of dollars in volume every day.
Even complex futures exchanges like the Perpetual Protocol have started to record a volume of around $ 30 million a day.
The significant increase in user activity of DeFi protocols directly boosts sentiment regarding Ethereum as DeFi users use ETH to pay gas as fees.
So as long as the fundamentals of Ethereum such as the fees paid per day and the daily transaction volume continue to improve, the outlook for ETH will remain positive.
What do traders think?
Traders are cautious in the short term as ETH approaches USD 1400 as it continues to be a major level of resistance.
A pseudonymous trader named “Loma” said that while an all-time high is becoming increasingly likely for ETH, the likelihood of a flush decline is high at $ 1,350. He said:
“Do you still think $ ETH-ATHs are a formality at this point, especially given the market conditions we’re driving forward, but … If there was ever an area for $ ETH where you could scam scammers again, this is it at ~ 1350 range. “
Once ETH hits its all-time high, industry executives say it would further legitimize cryptocurrencies as an asset class.
BarnBridge co-founder Tyler Culler-Ward noted that ETH and BTC together would hit an all-time high and would be an extremely positive factor for the cryptocurrency sector in general. He wrote:
“I think ETH and BTC, both of which are making all-time highs, will legitimize Crpto for a lot of people because they will realize that it keeps coming back when it falls, which makes it easier to exit markets when you’re really into technology.” believes. “
In the short term, the declining ETH reserves on the stock exchanges are an optimistic sign, as they show that there is less pressure to sell on the trading platforms.
This trend explains why ETH experienced low volatility when BTC fell sharply last week and saw a strong upward trend when BTC rebounded.
Ethereum, currently number 2 by market capitalization, has risen 13.45% in the past 24 hours. ETH has a market capitalization of USD 158.94 billion with a 24-hour volume of USD 41.05 billion.
Ethereum price table
ETHUSD chart from TradingView
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