Recent figures show the amount of new Ethereum addresses have grown significantly this year ahead of the planned 2.0 upgrade
Ethereum prices look set to rise for the remainder of this year as the number of transactions have drastically increased.
In a tweet, the co-founder of Glassnode revealed the magnitude with which transactions had grown this year. The greatest increase was seen in the smallest category of three or more transactions. This is a great indicator of uptake at the retail level, which of course has the largest base.
#Ethereum has seen a surge in usage in 2020.
The number of new addresses involved in more than one $ETH transfer has grown significantly this year.
New daily addresses with:
3+ txs: 32k (+ 159%)
5+ txs: 19k (+ 137%)
10+ txs: 9k (+ 114%)
25+ txs: 4k (+ 104%)
50+ txs: 2k (+ 98%) pic.twitter.com/FwA8qdwHZP
— Rafael Schultze-Kraft (@n3ocortex) June 6, 2020
It is a simple metric that the more the currency is used, the more popular it will become and as such will generate further adoption from new users. All of which applies positive upward pressure on the price.
Concurrent with this news about increased transactions, is the fact that miners receive greater rewards if the currency is used more frequently. As such, in this case, both parties are benefitting from this uptick in use.
The DeFi (Decentralised Finance) world is blooming at the moment and promisingly, the majority of DeFi apps run on the Ethereum blockchain.
Ethereum has however followed the demand, which is a reassuring sign in terms of their adaptability going forward. While it is extremely popular, the network itself is having issues with scaling — however, there is more promising news for Ethereum with the release of its 2.0 upgrade, which will mean increased speed and much-improved scaling capabilities. These are all coming thanks to Ethereum shifting from a PoW consensus model to a PoS.
As with any cryptocurrency, when trying to discern its potential future price movements, it is always useful to appraise the benchmark currency, Bitcoin.
The last Bitcoin cycle took its price to dizzying heights, and took Ethereum it to its all-time high of over $1,400. Many are hopeful that a similar trend will follow over the next couple of years. Combine this with the increased popularity and soon to be technical improvements and Ethereum could be set for a steep take off.