Corrections, yes, but here’s why Ethereum’s fundamental growth is still strong
Ethereum, the world’s largest altcoin, has one of the most promising ecosystems within the crypto-universe. on the contrary, many would disagree by looking at Ether’s bleeding price status.
At the time of writing, for instance, it was trading far below its last all-time high. In fact, it was trading just shy of the $3.2K mark following a 4% correction in 24 hours.
And yet, it continues to showcase strong fundamental growth. Here’s a glimpse of a few of these indicators.
Ethereum’s much-anticipated transition to Ethereum 2.0 continues to grab headlines over and over again. Ethereum 2.0 is an upgrade to the Ethereum Network which improves the speed, efficiency, and scalability of the network. This will take Ethereum to new heights as it will be able to drastically do more transactions, avoid congestion, etc.
Now for the latest status update.
The number of Ether locked in the Ethereum 2.0 contract has exceeded 9 million ETH. Etherscan.io data indicates that there’s approximately 9,062,418 ETH worth over $28 billion (at the time of writing) in the ETH 2.0 contract.
Comparing the same dataset to that of last year’s, ETH indeed has come a long way. The amount of ETH locked in the contract has increased by 22.29% since the first week of September 2021 when the contract held 7.4 million ether.
This is indeed a bullish development for 2nd largest cryptocurrency.
Driving through the storm
This has certainly been the case with different ETH proponents within the ecosystem. According to on-chain data, Ethereum addresses holding a balance now total over 68 million. This number seldom declined despite a rocky price history last year, maintaining steady growth besides the June to August period.
The number of $ETH holders continues to grow as it reached 68.34 million addresses, a new all-time high.
While the price of #Ethereum is still below the ath, the number of transactions remains near its highs with an increasing number of holders, reflecting the increasing demand. pic.twitter.com/AERkYip3bx
— IntoTheBlock (@intotheblock) January 17, 2022
The immense popularity of NFTs & its valuation is one of the important catalysts to add value to the aforementioned statistic.
For reference, consider the tweet mentioned below. Just recently, former Messari Research executive Ryan Watkins tweeted,
I don’t think yall appreciate how much of madhouse NFTs are right now.
And the crazy thing is, the entire sector could 10x from here and still be a blip compared to the rest of the industry.
NFT: $12 Billion
Total Crypto: $2 Trillion pic.twitter.com/jBFPqlS86p
— Ryan Watkins (@RyanWatkins_) January 18, 2022
Having said that, with no positive price movements in the market whatsoever, Ethereum’s market performance is currently considered bearish. This, despite the fact that on-chain metrics say otherwise.