“Last week, the Ethereum blockchain facilitated a staggering $250 billion in transactions, marking its highest volume since mid-March, a promising sign for the bullish prospects of the ether cryptocurrency.”
“Ether (ETH) Escapes Downtrend, Eyes $3,000 as Altcoin Surge Energizes Network, Highlights Matrixport’s Research Head, Markus Thielen.”
“Thielen suggests, ‘Ethereum ecosystem revenues hitting a low point from a prolonged slump could indicate a potential tradeable bottom for ETH.'”
“Recently, Ethereum’s weekly revenue, derived from transaction fees (gas), has surged above $30 million for two consecutive weeks. This marks a substantial rebound from the yearly low of $12 million recorded in early October, as reported by Token Terminal data.”
“Thielen suggests that a strategic bullish trade may remain viable as long as weekly Ethereum fees maintain levels above $30 million. He has set a price target of $3,000 based on technical chart patterns.”
“This optimistic perspective represents a shift from Thielen’s bearish stance on ETH back in September when he pointed to declining network revenues and user activity. In fact, Ethereum hit a seven-month low in early October, with its relative valuation against bitcoin (BTC) dropping to a 15-month low.”
“Amid a significant surge in Bitcoin and the broader cryptocurrency market, ETH has also witnessed a substantial rebound of approximately 20%, with its current value resting at $1,870.”
“Ether (ETH) Transitions to Deflationary State”
“The shift of capital from Bitcoin to altcoins has stimulated increased user activity on the Ethereum network, a crucial underpinning for numerous decentralized finance (DeFi) protocols and decentralized exchanges (DEXs, as highlighted by IntoTheBlock.”
“According to data from IntoTheBlock, the Ethereum network processed a remarkable $250 billion in asset transfers in the past week, marking the highest transaction value since the regional banking crisis in mid-March. This is a significant surge from the $105 billion recorded in late August.”
“Due to the surging activity on the Ethereum blockchain, recent blockchain data indicates that more ETH was burned than added to its supply during the past week. This marks a transition to a deflationary state for the token, following two months of being inflationary.”
“Lucas Outumuro, the research head at IntoTheBlock, suggests that the increasing on-chain activity is a positive indicator that the fundamentals of the crypto market are on the upswing.”
“Outumuro notes, ‘The uptick in on-chain activity and the increasing inflow of spot-driven investments signify robust demand fueling the cryptocurrency rally.'”
