There was another first for Ethereum this week; here’s why it matters

Ethereum’s run to $2752 is fast, consistent and offering double-digit gains to HODLers. Ethereum is leading another bullish recovery for altcoins post the dip. After Ethereum hit a new ATH in the past 24 hours, the statistics put traders’ bullish sentiment in perspective.

Statistics like Ethereum’s fixed supply show there will never be more than 120 Million ETH; the supply is expected to drop to $100 Million in 12 years, making traders bullish on ETH at the current price level. ETH continues to remain undervalued even at the current price level.

The selling pressure is increasing, however, in the long-term, it is expected to reduce by 90%. The concentration by large HODLers is 42% and with 100% HODLers being profitable at the current price level, the rally is anticipated to continue.

Road to 100 Million ETH and the alt rally

ETH Price Chart || Source: Coinmarketcap

What’s lucrative for traders is that there’s over 10 Billion ETH. The staking APR is expected to hit 25%. Institutionalization may have largely driven the current price rally. While the institutionalization of the Bitcoin market has made headlines several times in the current bull run, as an emerging store of value, the institutional adoption of ETH (YTD return ~235%) is underestimated and has clearly started since the end of Q4 last year.

Grayscale’s Ethereum trust has $8466.3 Million worth of ETH assets under management. Additionally, the volume of large transactions on ETH network has continued to go up. Whales and top retail traders may have started to realize the value that Ethereum adds to the portfolio, as one of the most dominant settlement layers. It has emerged as a top developer platform for crypto-native financial services (DeFi) and digital media (NFTs), thus supporting the price rally of several altcoins this season.

Road to 100 Million ETH and the alt rally

Institutionalization and bullish sentiment for ETH || Source: Twitter

Metrics that signal ETH’s adoption are the drop in the number of small wallets, with balance below 1000 ETH and the increase in unique wallet addresses.

It is likely that profits booked on ETH are adding to the TVL of DeFi and NFT marketplace tokens, however, this does not negatively impact the market capitalization or price of ETH. There’s another first for ETH this week. ETH’s price stayed above the 0.04 level consecutively for a week, for the first time in 1000 days. This is a significant achievement for ETH’s price rally and signals strong demand and bullish sentiment.


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Source: https://ambcrypto.com/there-was-another-first-for-ethereum-this-week-heres-why-it-matters/

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