As the price of Ethereum (ETH), the world’s second largest cryptocurrency by market capitalization, grows to a new monthly high, retail traders, particularly the small coin holders do not want to pass off on the opportunity. At the time of writing, Ethereum is changing hands for $3,783.53, up 4.73% in the past 24 hours according to CoinMarketCap. The price figure got rejuvenated today, amidst a growing positive outlook in the broader ecosystem.
Per Glassnode’s on-chain data, the number of non-zero Ethereum addressed has topped 60.8 million, a metrics that shows more people are buying into the Ethereum token. Per the analytics platform, Ethereum based contracts are excluded from with only Externally Owned Addresses (EOAs) being featured in the count.
The Driving Force Behind Ethereum’s Outlook
For investors who has a good understanding of the digital currency ecosystem, it is hard to dismiss the role Ethereum is playing in the growing popularity of decentralized finance (DeFi) ecosystem. The groundwork for the current performance has been laid down over the past years as the blockchain network was building out its ecosystem.
There are challenges with the network as it stands today, and most of the lapses in transaction latency, and high gas fees have generally not deterred people from utilizing the network as best as they can. The good thing investors are noting about Ethereum is the responsive nature of the network to adapt to the reality as the broader crypto industry grows.
While the Ethereum network has seen the emergence of competitors including Binance Smart Chain (BSC), Solana (SOL), and Polkadot (DOT) amongst others, it is arguably the only network that has experienced a massive shift in its technicals. The network is currently transitioning to be a Proof-of-Stake (PoS) network through the launch of Ethereum 2.0. The transition process is massive with a lot of work, and the Ethereum Foundation is in its advanced stages to bring this to reality.
The dedication of the Ethereum developers to keep the blockchain relevant for the future is a greenlight for investors who have been sitting on the sidelines. Fears of token inflation as is being held by other conservative investors has also been allayed with the advent of the EIP 1559 upgrade which turned the ETH token into a deflationary one. Thus far, over $653 million worth of the coin has been burnt away according to data from EtherChain