Although Ethereum’s on-chain activities are comparable to network conditions shortly before the ETH 2018 price reached its all-time high, Currently, the cryptocurrency is not showing the same bullish behavior.
In a report on decentralized finance (DeFi) published in July by Xangle Research, the analyst Jehn Kim found that Ethereum’s blockchain transaction volume increased by approximately 62%: On June 23, the highest value of the past 52 weeks was reached. Commission costs also increased by 688%.
Kim noted that these on-chain statistics “partially resemble the high seen during the bull run in late 2017 and early 2018,” when Ether (ETH) peaked at $ 1,396.
“Activity indicators in the Ethereum chain need to be reconsidered”Kim said that despite similar network values, ETH only reached $ 230 in the second quarter.
Will the price of ether rise in the third quarter?
Although the on-chain data is similar, market conditions in the second quarter of this year differ significantly from 2017-2018. Actually, The price of most cryptocurrencies hit an annual low in March, after an event that was later called Black Thursday.
Also, DeFi tokens and stablecoins are changing the blockchain landscape by making commissions skyrocket at the highest price in the past two years– For the first time, transactions on Ethereum are more expensive than on Bitcoin (BTC). The number of daily transactions with Ethereum did not come close enough to its all-time high of $ 1,349,890 in the second quarter after it was down to $ 1,000,000 at the end of June this year.
However, the effects of DeFi tokens and stablecoins were particularly noticeable in the third quarter. Indeed, Ethereum is the most widely used blockchain in the industry and is also beating Bitcoin from this point of view: this year Transactions on Ethereum were processed in excess of $ 508 billion.
The popularity of the network is also causing the price of cryptocurrency to skyrocket: At the time of writing, ETH was trading at around $ 323, an increase of 35.8% over the past week.