By Nathan Ferguson
What does the 2nd-largest crypto boast for investors to consider? It may be because the ETH2.0 deposit address on March 10 surpassed overall Ether locked, which sat at 10M at this publication. However, the market bias has not favored a positive price trend by ETH.
Change Your Standpoint
Ethereum, the lead alt, has served as a ‘resource’ for other platforms. Ethereum network kick-started its journey in 2015 by giving 72 million Ether to approximately 10,000 BTC wallets that partook in the ICO, distributed in over 144.7M recorded addresses. However, most Ethers remained static for years regardless of the massive redistribution trading hands.
A graph shows 6.5% of this supply remained active within the past 5 to 7 years and a daily average of 0.3%. You can presume that the circulating ETH supply was lower than expected. Other lucrative facets included EIP-1559 introduction and ETH’s supply percentage in ‘smart’ contracts. The former introduced a fee-burning to the existing Ether in supply.
Besides that, stablecoins consumed a colossal portion of Ethereum. The crypto community often used the leading alt to borrow stablecoins in decentralized finance. That might be the reason stablecoins attracted billions. While publishing this article, stable coins’ total market capitalization accounted for over $180 billion.
Bullish Developments
The crypto community has been criticizing Ethereum due to high transactional fees. However, ETH’s gas fees recently plummeted to six-month lows. Etherscan.io data shows average transaction cost in ETH at this publication was $2.24.
Also, Ethereum sees increased adoption. For instance, a nightclub in New Your, Somewhere Nowhere, plans to accept crypto payments. The lounge, recognized for its roof-top pool and the tallest club, partners with Coinbase to introduce crypto payments.
That way, patrons can pay with BTC and ETH as they do with credit cards. Such developments would boost investor confidence, translating to price hikes in the future. Furthermore, ETH 2.0 achieved a vital milestone as market players have staked over 10 million ETH on Ethereum 2.0 platform, the overall staked value surpassing $26 billion.
You can consider these factors whenever executing your positions on the Ethereum blockchain. However, beware of cryptocurrency risks.