Ether (ETH) approached resistance at $2,400 on December 9 but failed to break through. As a result, it came down to test the support level at $2,120 again. And this time Investors are confident it will surpass this level. To enter territory that hasn’t been visited since May 2022, before the collapse of the Terra ecosystem.
There are several reasons that can support the price increase. Ether That could push it above $2,500 ahead of the ETF’s expected approval in mid-January, although it could take as long as March with the U.S. Securities and Exchange Commission (SEC).
Ethereum Network DApp Volume and Protocol Fees
Instead of trying to predict the future, This is a challenging task in the rapidly growing cryptocurrency industry. We should analyze the latest trends that may be influencing Ether demand, as activity on decentralized applications (DApps) is a good indicator. And it starts with monitoring the volume on the DApp, as some sectors do not require large TVLs, such as NFT token markets, games, layer-2 bridges, and social networks.
Ethereum DApp volume has reached $27.8 billion over the past seven days. This was an increase of 14.2% from the previous week. And this growth was driven by a 21% increase in volume on Uniswap and a 52% increase in Balancer.
On the contrary The volume on BNB Chain during the same period was $4.5 billion, while Arbitrum accumulated another $5 billion. And what’s most striking is that Ethereum is the only blockchain among the top six to see a volume increase over the past seven days.
Solana, on the other hand, will need to increase by another 12x to reach half the current transaction volume of Ethereum DApps.
Furthermore, no other blockchain network has generated as much $95.4 million in fee revenue over the past seven days as Ethereum (excluding Bitcoin, which is not a direct competitor in the DApp ecosystem), which further points to significant potential. For more activities after future updates, including ‘DenCun’ scheduled for January. which aims to increase processing capacity and reduce costs
Ethereum Spot ETF Approval
The approval of Ethereum’s Spot ETF will set Ether apart from other cryptocurrencies in terms of regulation. This is because competitors have been accused by regulatory agencies of being securities.
Finally, investors should evaluate the position of Ether derivatives traders, especially large investors and market makers, where the Ether futures premium measures the difference between the two-month contract and the spot price. It has reached its highest level in more than a year. In healthy markets, the annualized premium or basis rate is usually in the range of 5% to 10%.
refer : cointelegraph.com
picture seekingalpha.com
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