Try Quests to earn cryptoFlash Bounty - 3. ETH Positive Price Action
INTRODUCTION
What is Ethereum?
Ethereum is a decentralized computing platform that uses ETH (also called Ether) to pay transaction fees (or “gas”). Developers can use Ethereum to run decentralized applications (dApps) and issue new crypto assets, known as Ethereum tokens.
Ethereum is the second-biggest cryptocurrency by market cap after Bitcoin. It is also a decentralized computing platform that can run a wide variety of applications — including a universe of decentralized finance (or __DeFi apps and services.
Everything from financial tools and games to complex databases are already running on the Ethereum blockchain. And its future potential is only limited by developers’ imaginations. As the nonprofit Ethereum Foundation puts it: “Ethereum is for more than payments. It's a marketplace of financial services, games and apps that can't steal your data or censor you.
”Why does the price of Ethereum fluctuate?
Like Bitcoin, Ethereum’s price is based on a global marketplace of supply and demand. Its price can be volatile in the short-term as demand overwhelms supply and vice versa.
QUESTION
Let’s examine ETH's positive price action this year:
\n
- Looking at Ethereum Mainnet activity from block: 16310000 (Jan 1, 2023) to block 16420000 (Jan 16, 2023) what on-chain activity could correspond to the recent increases in ETH's price?
- What major dapps, tokens, or similar have risen with or more than ETH over that time span?
- How has user activity, including in specific protocols, changed over the time period?
\n
After its upgrade, the value of Ethereum is currently stagnant at less than $1,300. The majority of analysts believe that ETH has a favourable short-term prognosis. A long-term price increase for Ethereum is also expected.
Ethereum’s prospects may appear less promising than they were a year ago due to the public’s rising dissatisfaction with NFTs. But due to its wide range of usefulness, Ethereum won’t be slowed down. NFTs are only one of many initiatives in the Ethereum network that are active at the same time.
While many experts believe that the price of Ethereum will increase following the merger, there are several other cryptocurrencies that might increase 10X in value by 2023 as well. So let’s get started right now
Ethereum: A Quick Overview
Ethereum is a totally distinct cryptocurrency from Bitcoin or Ripple. The native token that drives Ethereum’s blockchain system for smart contracts is called ether, commonly known as ETH.
Briefly, Ethereum executes smart contracts using the Ethereum Virtual Machine, a blockchain-based supercomputer. Ethereum price forecasts are high because so many analysts and investors think it will increase over time. This is because Ethereum is a ground-breaking cryptocurrency with a distinctive structure.
Due to the fact that the blockchain is utilized for more than simply creating smart contracts, Ethereum has a lot of room to expand as a network. It’s also utilized to create several other crypto assets, namely Shiba Inu, Tamadoge, and many more, increasing their value as anticipation about the prospects of cryptocurrencies rises.
Circulation of ETH
The Ethereum Merging has not only significantly decreased the energy needed to create new currencies, but it has also reduced the circulation of ETH significantly. A bit more than 7,000 ETH have indeed been distributed since the merging. This is a significant departure from where ETH would have been issued if proof-of-work had persisted.
If the network had not switched to proof of stake, it would have issued more than 344k ETH during the past month, as per Ultrasound Money’s PoW simulation. In the event that there is a network desire for the asset, this results in a significant shortage in ETH supply since the merging. This does not by itself render Ethereum deflationary. But technically, the merge issuance adjustment and EIP-1559 do make ETH price deflation.
The Ethereum platform burns ETH coins whenever it authorizes transactions as a result of an Ethereum enhancement request that was previously approved before the merging. As a result of the drastically reduced currency issuance following the merging, Ethereum may start burning more assets than are being created as long as the platform is being used by market players.
The Ethereum network destroyed 839k coins per year while creating fresh ETH at a rate of 603k coins during the past seven days. Since the network merger, Ethereum has never been deflationary.
The dynamic of burn and issue combined with the network’s staking system makes the possibility of a price squeeze much more intriguing.
The liquidity of the token has actually been moving down for a while. This is because a significant portion of the ETH quantity has been deployed to validate and collect incentives. Ethereum will remain deflationary moving forward as long as the supply lags the burn, even when the ETH payment given to stakers for platform security is traded off.Join Our Telegram channel to stay up to date on breaking news coverage
After its upgrade, the value of Ethereum is currently stagnant at less than $1,300. The majority of analysts believe that ETH has a favourable short-term prognosis. A long-term price increase for Ethereum is also expected.
Ethereum’s prospects may appear less promising than they were a year ago due to the public’s rising dissatisfaction with NFTs. But due to its wide range of usefulness, Ethereum won’t be slowed down. NFTs are only one of many initiatives in the Ethereum network that are active at the same time.
While many experts believe that the price of Ethereum will increase following the merger, there are several other cryptocurrencies that might increase 10X in value by 2023 as well. So let’s get started right now.
Conclusion
The world of cryptocurrencies is constantly changing. While some new competitors are entering the market, traditional coins have long dominated it. Cryptocurrencies, however, are unquestionably the fate of a decentralized economy.
Therefore, if you intend to invest your money, ETH is a fantastic choice. Ethereum may for all reasons mentioned above, set for a price increase in the near future. However, it will be a determining moment for the entire cryptocurrency industry due to the influence ETH holds over other altcoins too
PRICE OF ETH
Add Text Here
ANALYSIS
After NEW YEAR ,January 1, 2023, The average number of new users before the New Year was 56..9K, and after the New Year was 65.8K. The average shows the user count was not much affected by New YEAR .When we analyse the total daily number of new users in the above chart- During the Holidays and New Year, The total daily number of new users didn’t show any significant change, but post three days of New Year it increased to 148K new users.
we have examined New Users activities on Ethereum chain.
CONCLUSION
WE CAN SEE THE USER COUNT HAS INCREASED POST THREE DAYS OF NEW YEAR AND RISE OF PRICE FOR ETHEREUM HAS ALSO SEEM TO INCREASE THAT PERIOD WHICH SHOWS MORE USERS LEADS TO PRICE SURGEAlmost 8% growth in less than 30 days. as the average number of transactions shoot high in new year we can say, the activities by new users had seen a bullish trend in new year .THERE WAS NO SUCH DRAMATIC CHANGE IN THE ACTIVITIES ON OLD USERS . TOTAL COLLECTION OF NFT SALES & VOLUME WAS AT A SLOWING PACE INCREASE IN NFT SALES WILL AFFECT THE RISE IN PRICE. THE major activity by new users were transfer, but where is the question ?mints & swaps were also satisfactory on a progressive note only . these factors have boosted the eth price of eth after new year.
The world of cryptocurrencies is constantly changing. While some new competitors are entering the market, traditional coins have long dominated it. Cryptocurrencies, however, are unquestionably the fate of a decentralized economy.
Therefore, if you intend to invest your money, ETH is a fantastic choice. Ethereum may for all reasons mentioned above, set for a price increase in the near future. However, it will be a determining moment for the entire cryptocurrency industry due to the influence ETH holds over other altcoins too
TRANSACTION BY WALLET TYPES
ANALYSIS
Number of old users are remarkable for Ethereum .The daily share of transactions by old wallets was about 88% in December but seen a downfall from 88% to 80% in January 2023.transactions by Old wallets was 10.55M and New wallets had 2.5M transactions since January 2023 which is impressive .The Daily share of transactions by New wallets began at 12% in the December middle, but with each passing day, the daily share of transactions by new wallets increased and reached 20% in January 2023. Almost 8% growth in less than 30 days. as the average number of transactions shoot high in new year we can say, the activities by new users had seen a bullish trend in new year .THERE WAS NO SUCH DRAMATIC CHANGE IN THE ACTIVITIES OF OLD USERS .TOTAL TRANSACTION BEFORE NEW YEAR WAS 16.39M & AFTER NEW YEAR TOTAL TRANSACTION IS 3.5M.
NFT
ACTIVITY BY NEW USER ON DAILY BASIS
ANALYSIS
Based on above charts we can say that that based on sales volume boradapeyachtclub is a clear winner with 8.6M followed by mutantapeyachtclub with 5.5M vol .after new year, new collections like doodies & & beanz official are visible . based on top collection on total sales the otherside was the most popular collection before & after new year dominant with 283 counts beanz official hold second position with followed by ens which became less active after new year .
ANALYSIS
The average number of Liquidity and stake transactions before the New Year was higher than the New year. But when we analyse further we see the average number of Mint NFTs, NFT sales, Swap, and transfer transactions in New Year was higher than in December The daily share of transfer transactions decreased after the New year. The daily share of transfer transactions in the middle of December was 85%, but after the New Year decreased to 75%. which is a matter of concern .The highest number of new user activities was transfer. As we can see, The total daily number of transfer users has increased since January 1. The total daily share of transactions namely the share of swaps increased from 8% to 13%. Also, we can see the share of NFT sales on the secondary market increased by 1%. a negligible amount.