With the price of Ether (ETH) seeing stints above $200 in recent weeks, the leading altcoin faces an uphill task to reclaim the $300 region which it last visited during the 2019 mini-bull run.
However, sustained growth in the number of daily transactions and the number of unique addresses on the Ethereum network suggests the $300 region may not be as far as it seems for the price of ETH.
For one thing, a steady increase in the number of transactions and unique addresses signifies more adoption for Ethereum and its utility token (ETH) and takes up increased significance now since Ethereum 2.0 is now closer than ever before.
According to data from Etherscan, the number of daily transactions on Ethereum has nearly doubled (86%), moving from 466,526 on the first day of 2020, to 867,704 on Thursday, May 21. As further shown in the graph below, continued growth could see the number of transactions touch the 1,000,000 mark, for only the sixth time in the network’s history.
Interestingly, price charts show that the price of Ethereum had peaked above $300 in mid-2019, the last time that the number of daily ETH transactions hovered close to 800k-900k. Meanwhile, ETH’s all-time high above $1300 marked the only time, the number of daily transactions stayed above 1 million for a reasonable period.
The growing usage of the Ethereum network for decentralized finance (DeFi) applications, the impending launch of Ethereum 2.0, the recent roll-out of Ethereum-based futures contracts by ErisX Digital, are all recent fundamental growth that could lead up to a price rally.
Meanwhile, Coinfomania had recently reported, ConsenSys and Ethereum’s co-founder Joseph Lubin as confirming that the next version of Ethereum is set to increase the network’s scalability by 1000x.