Is Ether’s new ATH just the beginning? Several indicators seem to point to an imminent bull run
Many analysts predict that a parabolic run for ETH could be very close, fuelled by the growth of the DeFi ecosystem and solid network fundamentals
Over the past 24 hours, Ether has hit new all-time highs: now many analysts believe it could quickly reach a price well above $1,400.
ETH’s strong fundamentals are reinforcing the belief that the cryptocurrency could soon break through resistance between $1,400 and $1,500, with many Crypto Cash pointing out that the growing DeFi ecosystem could push ETH into a new phase of price discovery.
On 19 January, Spencer Noon of crypto venture capital fund Variant outlined 11 indicators that he believes suggest the imminent arrival of a parabolic bull run. Noon highlighted the fact that more than one million unique addresses have interacted with DeFi in the past eight months.
Noon added that monthly trading volume on DEX is currently at an all-time high of more than $30 billion; more than $20 billion has also been deposited into DeFi’s lending protocols, of which more than $4.5 billion are currently outstanding loans.
The number of daily active Ether addresses
Looking beyond DeFi, Noon points out that Ethereum is the top blockchain by daily fees generated, surpassing BTC by more than 50%. The number of daily active Ether addresses has doubled in the last 12 months to an all-time high of 550,000. In addition, nearly $20 billion worth of stablecoins have been minted on the Ethereum network in the past year.
The thread on Twitter highlights how over $25 billion is currently blocked in decentralised finance: currently 21 DeFi protocols each account for at least $100 million in total blocked value.
#1: Ethereum still clearly leads in terms of fees paid ($7.25 million per day on average): this shows that it is the most useful network in the world.
Despite the growth in Ethereum’s fundamentals, Noon points out that the number of Ether transactions valued at more than $100,000 is seven times lower than the January 2018 highs, suggesting that „institutions have not yet come into play“.
On the same day, Token Terminal, an analytics platform that uses traditional financial metrics to examine crypto markets, posted a chart of Ethereum’s „price to sales ratio“ on Twitter, with the caption „this time it’s different“.