With Ethereum slowly advancing to new historical highs in the past 24 hours, several onlookers believe that Ether can quickly surpass the $ 1,400 price range.
Ethereum’s robust fundamentals are strengthening the belief that Ether can sail beyond resistance by mid-$ 1,400, with many pointing to Ethereum’s ever-growing DeFi ecosystem as the most likely force to boost ETH in price discovery .
On January 19, Spencer Noon of the crypto VC fund Variant shared He believes that 11 indicators suggest that a parabolic bull run is near. He pointed to the fact that more than a million unique addresses that have interacted with DeFi in the past eight months.
Midday adds that the monthly volume of DEX is currently at the highest point of more than $ 30 billion, while more than $ 20 billion was deposited in DeFi loan protocols – of which more than $ 4.5 billion was issued as loans currently outstanding.
Looking beyond DeFi, Noon also points out that Ethereum is the leading blockchain network for daily fees generated – beating BTC by more than 50%; the number of daily active Ether addresses has doubled in the last 12 months, reaching maximum levels of 550,000; and it almost $ 20 billion worth of stablecoins were minted at Ethereum last year.
The topic notes that more than $ 25 billion is currently blocked in DeFi, adding that 21 decentralized financial protocols now represent at least $ 100 million in the total blocked amount each.
# 1: Ethereum continues to shrink the entire cryptographic space in terms of fees paid ($ 7.25 million daily average) – proving that it is the most useful network in the world. pic.twitter.com/t7Co50GukJ
– Spencer Noon (@spencernoon) January 19, 2021
Despite the emerging fundamentals of Ethereum, Noon notes that the number of Ether transactions valued at more than $ 100,000 is seven times lower than during the highs of January 2018, suggesting that “institutions have not yet entered the game”.
On the same day, Token Terminal, an analytical platform that uses traditional financial metrics like P / E to examine crypto markets, tweeted a graph of Ethereum’s “price / sales ratio” with the caption “This time is different”.
This time is different pic.twitter.com/4pfqAnvm9n
– Terminal Token (@tokenterminal) January 19, 2021
The graph shows that Ethereum’s price in relation to the rates generated by the network is reaching all-time lows – suggesting that the market may be extremely undervalued. However, responses on Twitter to challenge the applicability of using the metric for Ethereum, noting that Ethereum’s “sales” comprise fees that are charged by mining companies.
Messari also shared data indicating that Ethereum’s daily transaction volume now exceeds that of Bitcoin by 28%.