Last week, $250 billion in transactions were cleared on the Ethereum blockchain, the most since mid-March, supporting the price of ether.
According to a study published this week by Matrixport’s director of research, Ether (ETH) has broken out of its downturn and might climb above $3,000. This is because the recent altcoin craze rejuvenated network activity.
“Revenues for the Ethereum ecosystem are selling out from lower levels; this could signal a tradeable bottom for ETH,” Thielen added.
Token Terminal data reveals that Ethereum’s weekly revenue has increased over $30 million for two consecutive weeks, up from the annual low of $12 million set in early October. This money comes from the income from the network’s transaction fees, commonly known as gas.
Thielen, who had been pessimistic on ETH in September due to falling network income and user activity, has now adopted a more optimistic attitude. In fact, ether hit a 7-month low at the beginning of October, and its relative worth vs bitcoin (BTC) plummeted to a 15-month low.
Ethereum’s price has risen by almost 20%, to a recent trading level of $1,870, in tandem with a similar surge in bitcoin’s value and the rest of the cryptocurrency market.
Ethereum, the backbone of several decentralized finance (DeFi) protocols and decentralized exchanges (DEXs), saw an increase in user activity as investors shifted their money from bitcoin to other cryptocurrencies, as noted by IntoTheBlock.
According to IntoTheBlock statistics, the network resolved $250 billion in asset transfers last week, the largest amount since the regional banking crisis in the middle of March. This is an increase from the $105 billion settled in late August.
As a consequence of increasing activity on Ethereum, blockchain data indicates that more ETH was destroyed than added to its supply during the previous week, leaving the token deflationary after two months of being inflationary.
According to IntoTheBlock’s chief of research, Lucas Outumuro, a rise in on-chain activity indicates strengthening crypto market fundamentals.