Ethereum’s price also seems to be recovering along with the one of Bitcoin following a drop that the market saw a few days ago.
At the moment of writing this article, ETH is trading in the green, and the coin is priced at $578.51.
The digital asset is up by more than 6% in the past 24 hours.
Main factors triggering bullish moves for ETH’s price
Spencer Noon, the head of crypto-native investment fund DTC Capital, said that Ethereum’s recent rally is fueled by strong fundamental factors.
He addresses Ethereum’s 90-day moving average of nearly 500,000 active addresses – it’s important to note that this number has doubled since the start of the year. This is the top reason to be bullish on ETH.
He also addresses the number of fees that are paid on the network, and this is a sign that the demand has never been higher. This is also showing that Ethereum is the most useful network in the whole world.
He also said that the fact that billions of dollar worth of stablecoins have been issues on Ethereum is another sign of the utility.
Also, 1 million total DeFi users and $14 billion in total value locked in DeFi show Ethereum is a part of a new and maturing financial ecosystem.
He also made sure to point out the fact that 150k Bitcoin has been converted to ETH-baased representations of Bitcoin – this is a sign that ETH becomes an economic vacuum for all kinds of assets.
The online publication the Daily Hodl notes that “Last but not least, after reaching $86 billion in volume this year, Noon says decentralized exchanges are here to stay and clear competitors to their traditional, centralized counterparts.”
We are now reaching the point in the cycle where people tell you how to value $ETH. The truth is, no matter how hard they try to pattern match an old methodology or appeal to their authority, no one really knows how to value it. The world has never seen an asset like $ETH before.
— Spencer Noon (@spencernoon) November 22, 2020
Stay tuned for more relevant news.