Bitcoin may have stumbled at resistance and could be heading for a prolonged period of consolidation at lower levels. Ethereum, however, could be on the cusp of another bull market as on-chain metrics and signs continue to improve.
In a lengthy thread, DTC Capital head Spencer Noon (@spencernoon) posted several charts and metrics that paint a bullish picture for the Ethereum network.
The first sign is a surge in active ETH addresses, which have reached 380,000. Glassnode also reported that there are now 40 million ETH addresses holding a piece of the digital asset, an increase of 350% since the Ethereum price peaked in early 2018.
Ethereum network ‘gas‘ is also being used at record levels, which is a sign that Ethereum block space demand has never been higher.
Stablecoin issuance on the Ethereum network is another all-time high as over $7 billion has now been reached—$4 billion of that being issued in the past four months.
DeFi usage and development are also on the up and Ethereum provides the backbone for this emerging decentralized financial landscape. Noon pointed out;
$25 million of $WBTC [wrapped Bitcoin] has been minted since May 1st – a sign that Ethereum is becoming an economic vacuum for all assets, starting with Bitcoin.
There are several other metrics in the thread including increased investment in institutional funds such as Grayscales’s ETH fund. Exchange outflows have increased indicating accumulation, and transactions are up almost 50% since the beginning of the year.