Ethereum (ETH) Becomes the Main Blue Chip of the Cryptocurrency Market

Ethereum (ETH) Becomes the Main Blue Chip of the Cryptocurrency Market

Source: Shutterstock

Ethereum’s price is approaching the psychologically important $4K mark. Its growth is fueled by late investors.

Since April 26, ETH has entered a phase of explosive growth. In two weeks, the price has risen 80% from the $2,190 level. According to analysts, the Berlin update is the fundamental basis for growth. Due to this update, fees on the network decreased, Ethereum again became attractive for DeFi projects, with their big volumes of liquidity that come in ETH. New DeFi projects also fueling expectations for the upcoming London update, which will fully change the situation with fees in Ethereum.

The DeFi industry is assessed based on value locked in smart contracts. The total amount (Total value locked, TVL) in April exceeded $100 billion, according to the tracker DefiLlama. Ethereum takes a share of 65% in this value. Now TVL is already almost $150 billion. Ethereum’s share is almost $100 billion. Other blockchains are trying to compete with Ethereum. Binance Smart Chain manages this better than others, it gets $30 billion shares. TRON, Polkadot, Avalanche, Solana are also not preparing to give up their DeFi market share. Therefore, the efforts of the Ethereum team to create an enabling environment for DeFi are justified and will be continued.

According to cryptocurrency veteran and former CEO of DTC Capital, Spencer Noon, Ethereum now has some components for growth that could lead it to a price of $10K. The first and foremost, according to Noon, is that ETH generates the most revenue. Plus, the Ethereum network transfers the most value. This volume currently exceeds that of the payment giant PayPal by 12 times. An important indicator is the growth of active wallets. Based on the analysis of the wallet growth graph, the expert states:

– Ethereum has 625,000 daily active addresses, a figure that continues to climb and now sits comfortably at ATHs.

The expert believes that among the other components of ETH’s growth, additionally to DeFi, is also the use of ETH to launch non-fungible tokens (NFT), which are gaining popularity. Ethereum NFT sales have surpassed $600 million. Noon believes the NFT market will continue to grow and this will push ETH to grow too.

However, Spencer Noon also considers the upcoming London update scheduled for July to be the main factor that could drive the price of ETH to $10K. Perhaps in 2-3 months, we will see ETH for $10K. If the current dynamics are maintained, this will lead Ethereum to the first place in terms of capitalization. Now the share of ETH in the cryptocurrency market is about 19% and is growing, the share of bitcoin is constantly decreasing, Bitcoin Dominance is about 44%.