ETH shoots above $300 for the First Time over 12 months

The last time ETH touched above $300 was July 19, 2019. ETH is presently trading at $308 on exchanges according to data from Coinmarketcap.

By · Jul 26, 2020 . 7min read

Photo by Clifford Photography on Unsplash

ETH, the second cryptocurrency by market capitalization just shot above $300 for the first time in over 12 months.

The last time ETH touched above $300 was July 19, 2019. ETH is presently trading at $308 on exchanges according to data from Coinmarketcap. The smart contract platform continues to see increased usage since 2015 it was established.

Just in a little around 5 years of Ethereum’s establishment, it has seen what some might consider as its best and worst moments. Obviously, ETH’s worst moment till date post-ICO boom period is June 2020 where it dropped to $98, falling to a double-digit for the first time since May 2017. As the preferred smart contract platform and for dapp developers, it continues to rack up gains. This gain has almost doubled in price with seventy-one percent increase in the cryptocurrency’s price within 12 months.

Possible factors fuelling price surge

Several metrics when critically examined have been fuelling the surge in Ethereum token price.

Earlier this month, Messari, a cryptocurrency analytics firm reported that Ethereum surpassed Bitcoin as the network that settles the most value per day. This means that the dollar value on the transactions of both Ether and its tokens is now higher than Bitcoin’s.

Ethereum surpasses bitcoin daily settlement value graph by Messari fuelling ETH above $300

Another factor to consider is the recent rapid rise in the number of new Ethereum addresses created. Santiment, a data analytics firm for cryptocurrencies show an upward trend in the number of Ethereum addresses created since January. This continues to increase from year to date.

Daily activities on Ethereum with rising addresses fuelling ETH above $300
Source: Santiment

Also worth mentioning is the spike in stablecoins activities in 2020. The top 3 stablecoins are ERC20 tokens. These are USDT, USDC and DAI command as much as $11.33 billions in market cap. For context, Ethereum controls over 60% of the circulating supply of USDT.

Stablecoins market cap data by Santiment fuelling ETH above $300
Source: Santiment data

As we earlier reported, the month of June saw value transferred using stablecoins surpass value transferred using bitcoins for the first time ever. And these stablecoins are largely ERC20 tokens. Stablecoins have facilitated over $500 billion worth of transactions in 2020 alone.

More importantly, the DeFi boom also contributes to Ethereum as the driver of this movement. From year to date, over $3.5 billion is locked up in the various DeFi smart contracts. A closer look at the top 20 DeFi projects shows 19 out of 20 are Ethereum-based. Bitcoin’s Lightning Network ranks 20th as at the time of this publication.

ETH surging price, a boom for miners

Surging price in Ethereum correspondingly means booming miners’ revenue on the network. ETH miners are smiling to the bank as data feed obtained from Glassnode reports miners’ revenue fees surging to an all-time high. On the hourly chart, it observed that more than a third of the ETH miner revenue currently comes from fees rather than blocks; up from less than 5% in April.

As ETH rises above $300 and possibly maintaining the steam with the various fundamentals, is alts season preparing to move from this summer?

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