After recently hitting highs of $ 4,350, Ethereum (ETH) was down to $ 3,871 at the time of writing CoinMarketCap.
The crypto market experienced shock waves after American electric car maker Tesla decided not to accept BTC payments and raised concerns about its negative environmental impact.
The Ethereum network has reached notable milestones since the second largest cryptocurrency broke its previous record of $ 1,400 in 2018.
For example the total fees paid beat a monthly high of 746,026 ETH, as confirmed by on-chain metrics provider Glassnode. In addition, the dominance of ETH reached a record high of 19.13%.
The supply of Ethereum on the exchanges is still exhausted
according to to market analyst Joseph Young:
“The supply on the stock exchanges continues to decline. Feels very different from the last bull cycle. “
Glassnode had previously reported that ETH had fallen to 12% of circulating supply on the exchanges, as ether in smart contracts rose to 22.8%.
Ki Young Ju, CEO of CryptoQuant Attributes This trend towards ease of use and the Ethereum ecosystem has resulted in ETH holdings declining in both derivative and cash exchanges. As a result, the liquidity crisis on the sales side has worsened.
Crypto addresses with at least 10,000 ETH meet ATH
Lex Moskvoski, CIO at Moskvoski Capital, noted that crypto addresses with more than 10,000 ETH broke the record in the past 30 days. He explained::
“The number of Ethereum addresses with more than 10,000 ETH has repeatedly reached ATH in the last 30 days. Looks like the beginning of a massive buildup. Smart contracts are excluded from this table. “
In addition, decentralized financing (DeFi) Projects on the Ethereum network have grown incredibly quickly, raising more than $ 100 billion in liquidity in less than a year. Ethereum smart contracts are one of the most sought-after features in DeFi.
Time will tell if ETH will hit the psychological price of $ 5,000 this year, as Ether already saw a remarkable upward trend in the first quarter of 2021. Many tend to believe that ether will eventually reach a value of $ 5,000. Mark Cuban, the owner of Dallas Mavericks, seems to believe that Ethereum will dwarf Bitcoin in the future in view of the dependence of other blockchain projects on his network.
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