According to Spencer Noon, head of crypto-native mutual fund DTC Capital, Ethereum’s recent rally is being driven by eight strong fundamentals.
Noon Highlights Ethereum’s 90-day moving average of nearly 500,000 active addresses, a number that has doubled since the start of the year, is the main reason to be optimistic about ETH.
He also points to the amount of over 80 billion gas per day being charged online as a sign that demand has never been higher.
Noon believes that the total amount of fees paid on the network, which is higher than any other blockchain platform, shows that Ethereum is the most useful network in the world.
Noon cites the fact that billions of dollars worth of stablecoins have now been issued on Ethereum as yet another sign of the platform’s usefulness.
In addition, it shows that a total of 1 million decentralized financial users and the total value set in DeFi of $ 14 billion show that Ethereum is part of a new and mature financial ecosystem.
Noon also cites the fact that 150,000 Bitcoin (BTC) have been converted into Ethereum-based representations of Bitcoin as a sign that Ethereum is becoming an “economic vacuum” for assets of all kinds.
Last but not least, after hitting $ 86 billion in volume this year, Noon says decentralized exchanges should stay here and make the competitors clear over their traditional, centralized counterparts.
Though he believes Ethereum is fundamentally healthy, noon says It is difficult to pin down any real value for the second largest cryptocurrency by market capitalization as it is an emerging invention in an emerging industry.
“We are now reaching the point in the cycle where people tell you how to rate ETH. The truth is, no matter how hard they try to find an ancient methodology or appeal to its authority, no one really knows how to evaluate it. The world has never seen an asset like ETH. “
Featured image: Shutterstock / Ahmed Muntasir