Ether (ETH) may head towards the $3,000 level as the recent altcoin craze has spurred activity on the network, according to Markus Thielen, head of research at Matrixport, in a report inweekthis
“Revenue for the Ethereum ecosystem is bottoming out from depressed levels. And this may signal bottoming for ETH,” Thielen said.
Ethereum’s weekly revenue, which is revenue from network transaction fees, also known as gas, recently rose above $30 million for two straight weeks. This is up from an annual low of $12 million in early October. As the information from Token Terminal showsgiveSeen, setting a price target of $3,000 based on technical chart patterns.
positive trend It marks a turning point from Thielen’s negative views on ETH in September. He talked about the network’s revenue and user activity deteriorating. In fact, ether in early October It has fallen to a 7-month low, while its valuation relative to bitcoin (BTC) has also fallen to a 15-month low.
Ether (ETH) turns deflationary
The flow of funds from bitcoin to altcoins has helped spur user activity on Ethereum, which is the foundation of decentralized finance (DeFi) and decentralized exchange (DEX) protocols, as IntoTheBlock points out.
The network transferred assets totaling more than $250 billion last week. This is the most since the region’s banking crisis in mid-March. and up from $105 billion in late August, according to IntoTheBlock
With increased activity on Ethereum, more ETH has been burned than has been added to the supply over the past week. As a result, the token became deflationary after two months of experiencing inflation.
The increase in on-chain activity is a sign that crypto market fundamentals are improving, according to Lucas Outumuro, head of research at IntoTheBlock.
refer : coindesk.com
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