Where is Ethereum Heading?

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Looking at what has been happening in the crypto space for the past few weeks, one would think the only thing that matters at this time is the Bitcoin Spot ETFs. If you go by that, it would be a false Judgment and an assumption from someone who is not following what's actually happening in this space. While the noise around the Bitcoin Spot ETFs approval is still very loud and wouldn't allow most people to look elsewhere, the crypto market has been witnessing a phenomenal change with one of the oldest coins doing the unimaginable.

With the ETFs approval done and dusted, all eyes are now on ETH as it is witnessing an exciting week in a way that has not been seen before. ETH did some magic by outperforming BTC during the spot ETF approval week. The stats are very interesting, and even the mainstream media could not dismiss it. Below are the stats that may shock you.

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Ethereum Price Performance in the past week

Price performance is very significant as that is what everyone wants to see. ETH shows resilient performance over BTC during the spot ETF approval period. While BTC had a 10% decline following ETF approval, ETH proved stronger and solid by only losing 5%, resting on a robust support level of $2,500 level.

All that ETH managed to do over the past week is impressive and such performance shouldn't be taken for granted as the evidence is very much obvious. ETH shows that a coin can create its own trend, breaking away from the pulling force of BTC on others' coins.

What this tells us is that ETH is strong and can gain value appreciation without the influence of BTC price. While every other coin including altcoins all nosedive following BTC's slide on the ETF approval, ETH holds strong finding a level of resistance. This proves that ETH is in its own right and has established strong demand for the coin.

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ETH Network Transaction Peak

One of the most important things in determining the strength of a coin is the network transaction peak. ETH Network Transaction Peak has taken a very significant jump this week recording a notable increase in daily transactions, reaching a new multi-year high record. The week of 7 days record shows an increase from 1.1M to 1.3M in transactions, a level that has not been seen since November 2021.

This proves that demand for ETH is building up, especially in a time when everything is in decline following ETF approval. While the market may be unpredictable with regard to the Bitcoin Spot ETFs approval, the trend shows that ETH is gaining value and everyone is watching. All eyes are now on ETH and what it can do in the coming days and weeks.

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Increase in Transaction Volume

Transaction Volume is another thing that tells us the health of a coin. A high number of transactions can mean that users are engaging with the currency a lot, either through buying or selling the coin. While the BTC transaction volume during this week looks parallel, transaction volume, a measure of the economic throughput of ETH in the Ethereum Blockchain, experienced a surge from 2.8B to nearly over $4B during the past week.

With the inflow of a billions of dollars in transaction volume, this means that people have been engaging a lot with the coin, increasing adoption rates, and increasing user interest. With the changes that are currently being implemented and many others to come on the Ethereum network the network transactions and users' adoption would likely increase more in the future.

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ETH holders in Profits

The purpose of buying and holding a coin is to make profits in the future, and this time, record shows that ETH holders are in profits. Data revealed that 91.5% of ETH in circulation is in profit.

This means that out of the current $298.84B worth of ETH in circulation, $276.43 billion are already in profits. This is a very large amount of profits. This will imply that those who invested in ETH in previous years and held on to it are getting the benefits for their patient and are likely to continue to do so.

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What more do we look out for with Ethereum?

A lot of changes are being proposed in the Ethereum network that can have many benefits for the coin. After successfully moving from being inflationary to deflationary, analysts believe that ETH is on the right path to being more profitable for Investors.

The future of Ethereum lies in the innovations and improvements on the network as a virtual machine, enabling the integration of scalable layer 2 networks, Incentivizing users and developers to keep building on the network.

Posted Using InLeo Alpha