Spencer Noon, the head of crypto investments at DTC Capital, says the use of Ethereum in the real world is increasing enormously.
Afternoon points at the increasing popularity of stablecoins and the emergence of decentralized financing (DeFi) as two key factors driving the network and driving demand for the cryptocurrency ETH.
“There is a growing link between Ethereum utility and ETH demand. ETH miners committed $ 3.5 million in costs in the past 30 days.
Below we see that the demand for blockspace is mainly driven by stablecoins and DeFi, which together account for> 63% of the fees paid. ”
The number of daily transactions on the Ethereum network has skyrocketed in 2020, from 466,000 on January 1 to 855,000 on May 20, BitInfoCharts.
Institutional interest in the second largest cryptocurrency also seems to be increasing. The digital asset management giant, Grayscale, reported record inflows of $ 110 million in its first quarter in its Grayscale Ethereum Trust. The afternoon says the numbers show that Ethereum is officially on the radar for high net worth investors.
Institutional investors buy ETH. The cat is officially out of the bag. From the latest grayscale report: [Grayscale] Ethereum Trust saw $ 110 million in Q1 inflows.
This is more than all previous inflows from the past 2 years ($ 95.8 million). ”
ETH’s price started the year at $ 131.88 and is now at $ 195.63 at the time of publication, according to CoinMarketCap. That is an increase of 48.33%.
Bitcoin (BTC), which has fallen 5% in the past 24 hours, opened 2020 for $ 7,200 and now stands at $ 8,990 – up 24.86%.
Featured image: Shutterstock / kkssr