Ethereum (ETH) Hits A New All-Time High of $1439 With Improving On-Chain Fundamentals

Just while Bitcoin (BTC) continues to consolidate between $35,000-$36,000, the world’s second-largest cryptocurrency Ethereum (ETH) continues to make a solid surge ahead.

On Tuesday, January 19, Ethereum surged all the way above $1400 levels for the first time since January 2018 hitting its new all-time high of $1439. Ethereum has rallied more than 90% so far in just the first 20 days of 2021 and analysts think that we are just getting started yet.

At its current market cap of $150, Ethereal (ETH) is bigger than some of the biggest Wall Street banks like Citi Group, Wells Fargo, and Morgan Stanley. Well, the ETH price rally comes on the backdrop of strong improvements of the Ethereum network fundamentals.

  • Ethereum accumulation is on a rise as investors have been moving ETH out of the exchanges in recent times. Most of the ETH is supposedly going to cold storage and the supply crunch at exchanges with increased demand is likely to lead the price rally further.
  • The ETH hash-rate is at an all-time high of 313.12 TH/s and Ethereum miners have been making a bomb ever since the DeFi wave of summer 2020. The Ethereum network daily transactions volume has gone parabolic in recent times as the network settles over $12 billion is daily transactions which is $3 billion more than Bitcoin’s.
  • The daily Ethereum active addresses are on a steady growth and so far they have doubled to 550K alone in 2021.
  • The developments with Ethereum 2.0 have gone pretty fast ever since they deposit contracts went live on December 1, 2020. So far, 2.57 million ETH coins have been sent to Ethereum 2.0 deposit contracts. Note that all the ETH coins staked with Ethereum 2.0 have a minimum lock-up period. Thus, higher staking suggests higher investor confidence while at the same time it hints at liquidity shortage.
  • The CME Ether Futures are just three weeks away from launch. Once they go live, it will legitimize ETH as something that institutional investors can own, and we will see a surge in institutional following thereafter soon.
  • With Ethereum hosting most of the DeFi applications, ETH has emerged as the base-money collateral of this new financial system. The DeFi on Ethereum has grown from $1bn in Jan 2020 to $16bn in Jan 2021. Just as Bitcoin (BTC) has established itself as the digital equivalent of Gold, Ethereum (ETH) has emerged as a key asset of the decentralized finance (DeFi) market.

The ETH price has retraced once again after yesterday’s ATH and is currently trading at $1302 with a market cap of $150 billion.