On-Chain Data Shows Ethereum Usage Has Rocketed, Boosting ETH’s Bull Case

Ethereum is still down more than 80% from its all-time high, but that didn’t stop cryptocurrency users from adopting the asset more and more.

Rafael Schultze-Kraft (@ n3ocortex on Twitter), the chief technical officer of blockchain analysis company Glassnode, recently shared the chart below. It shows that the number of new daily Ethereum addresses with more than one transaction has risen dramatically since the beginning of the year, reaching levels that have not been seen since 2018.

Ethereum has risen sharply in 2020. The number of new addresses is involved in more than one ETH the transfer has grown significantly this year, ”Rafael Schultze-Kraft has reacted on the map.

Chart by Rafael Schultze-Kraft (@ n3ocortex on Twitter), the chief technical officer of blockchain analysis company Glassnode, with an increasing use of the ETH blockchain.

Boost to ETH’s Bull Case

Analysts say the increasing use of the Ethereum network is rocket fuel for the cryptocurrency underlying the network, ETH or Ether.

Mythos Capital founder Ryan Sean Adams explained that for the past four years, ETH’s price has been closely correlated with the transaction fees that Ethereum users pay.

Due to the increased blockchain activity, some of which were described by Glassnode’s Schultze-Kraft, costs have skyrocketed in recent weeks.

If the historical relationship persists, ETH is ready to collect tens of percentages, a chart by Adams shows.

ETH price vs Ethereum Blockspace costs

ETH price vs Ethereum Blockspace costs

Related Read: Crypto Facts: $ 200 Million In Bitcoin Liquidated, Ethereum DeFi Adoption Limited, Bloomberg Is Bullish

Not the only positive catalyst for Ethereum

The increase in use of Ethereum is far from the only positive catalyst currently affecting the underlying market for ETH.

As previously reported by NewsBTC, the value of cryptocurrency locked in decentralized financing recently reached the $ 1 billion region for the second time ever. Analysts believe that DeFi’s growth will be one of Ethereum’s biggest growth engines in the coming years.

For example, the founder of MakerDAO Rune Christensen, said that Ethereum will attract “all value” through DeFi in the cryptocurrency space:

“4 million Dai has just been beaten in one transaction with WBTC. This really shows the latent demand for non-ETH assets, and it is the beginning of a broader trend of DeFi acting as an economic vacuum that will eventually attract almost all the value to the Ethereum blockchain. “

In addition, the first phase of the Ethereum 2.0 upgrade goes live.

The upgrade introduces Proof of Stake to the ETH market, lowering altcoin inflation over time.

The introduction of strike is expected to result in an influx of demand from long-term holders who wish to use their Ether in exchange for interest.

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Price tags: ethusd, ethbtc
On-Chain Data Shows Ethereum Usage Has Rocketed, Boosting ETH Bull Case

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