With Ethereum culminating in the highest record of all time in the past 24 hours, a number of spectators believe that Ether could rise rapidly through the $ 1,400 price range.
The robust fundamentals of Ethereum reinforce the belief that Ether could surpass resistance in the mid-$ 1,400 range, with many pointing to Ethereum’s ever-growing DeFi ecosystem as the force likely to drive the ETH to price tracking.
On January 19, Spencer Noon of the crypto VC fund Variant shared 11 indicators he believes indicate that a parabolic bull is nearby. He pointed out that more than a million unique addresses that have been contacted with DeFi over the past eight months.
Noon adds that the monthly DEX volume is currently more than the highest $ 30 billion, while more than $ 20 billion has been poured into DeFi lending protocols – of which more than $ 4.5 billion was issued as currently outstanding loans.
Looking further than DeFi, Noon also emphasizes that Ethereum is the best blockchain network through daily fees generated – which BTC with more than 50%; the number of daily active Ether addresses has doubled in the last 12 months to reach overall highs of 550,000; and this almost $ 20 billion in the past year, stable mines have been struck on Ethereum.
The thread notes that more than $ 25 billion is currently locked into DeFi, adding that 21 decentralized financing protocols are now locked in at least $ 100 million in total value.
# 1: Ethereum still disappears the entire crypto space in terms of paid fees ($ 7.25 million per day), proving to be the most useful network in the world. pic.twitter.com/t7Co50GukJ
– Spencer Noon (@spencernoon) 19 January 2021
Despite the rising principles of Ethereum, Noon notes that the number of Ether transactions is worth more than $ 100,000 seven times smaller than during the January 2018 highs, indicating that ‘institutions have still not entered the game.’
On the same day, Token Terminal, an analytics platform that uses traditional financial metrics such as P / E to examine cryptocurrencies, tweeted a graph of Ethereum’s “price-to-sales ratio” with the caption “this time is different.”
This time is different pic.twitter.com/4pfqAnvm9n
– Token Terminal (@tokenterminal) 19 January 2021
The graph shows that the price of Ethereum in relation to the fees generated by the network reaches its highest low, indicating that the market may be extremely undervalued. Answers on Twitter, however challenge the applicability of using the criterion on Ethereum, noting that Ethereum’s “sales” include fees collected by miners.
Messari also shared data indicating that the daily volume of Ethereum transactions now exceeds that of Bitcoin by 28%.