Metrics Suggests Ethereum May Soon Shoot Higher
Cryptocurrencies remain below the level attained at the end of 2017. However, analysts anticipate bullish moves in ETH, BTC and other digital assets. In recent times, analysts have been able to prove their bullish anticipation for ETH, using a metric that suggests prevalent growth of the network within recent months. Such metrics are pointing to a surge in prices ahead.
According to a Twitter user in recent times, Ethereum’s growth is on the upside, sharing a chart.
Ethereum's network growth is on an upward trend. pic.twitter.com/rsjGAA0Ura
— Adam Ship (@AdamSophrosyne) January 8, 2020
The definition of network growth is based on the number of new addresses created per day. It has increased in recent times to levels unseen since the top of the bull run in 2019.
The chart above shows a distinct correlation between the number of new Ethereum addresses and the price of ETH. It seems address count growth comes before price action.
Based on such historical correlation, the metric’s rapid growth may suggest utmost upside potential (towards $200 and $300) ahead for ETH.
There are a few theories that suggest what is responsible for the sudden growth of the Ethereum address count.
A leading theory is the rise of decentralized finance (DeFi). DeFi Pulse’s statistics on the value of digital assets locked in decentralized finance applications put it at $667.3 million. The statistics include less than 3 million Ether.
The thriving address count for ETH comes on the revelation of other positive fundamental factors that may only influence ETH and ERC token demand ahead.
An announcement says Stephen Dinwiddle (Brooklyn Nets player) is launching an Ethereum-based bond that represents himself. Stephen Dinwiddle partnered with Carlos Domingo of Securitize to make this happen. According to Domingo, the issuing of the bond is going to be on the Ethereum blockchain and its management will be by a digital transfer agent.
The aforementioned theories and metrics suggest the likelihood of increasing demand for ETH ahead, creating a case for price increments if such demand is higher than the supply.
Featured image courtesy of Shutterstock. Source: Cryptopress.