Ethereum price rose slightly on Wednesday as sentiment in the cryptocurrency market improved. ETH rose to $2,455, up from this week’s low of $2,120. It has jumped by 75% from its lowest level in April this year. This article provides an Ethereum forecast as its stablecoin volumes jump.
Ethereum stablecoin growth is accelerating
Ethereum has become the second-biggest player in the stablecoin industry after Justin Sun’s Tron. Artemis data shows that the number of stablecoin addresses in Ethereum has jumped by 8.7% in the last 30 days to over 2.4 million. Tron has 10 million addresses.
Further data shows that the supply of stablecoins on Ethereum has jumped by 0.8% in the last 30 days to $127 billion. Most of these stablecoins are Tether (USDT), USD Coin (USDC), USDS, and USDe.
Ethereum’s adjusted stablecoin transaction volume has jumped by 58% in the last 30 days to nearly $530 billion. The total unadjusted volume has jumped by 44% in this period to over $1.1 trillion.
Ethereum’s biggest challenge in the stablecoin industry is that Tron has a bigger market share because of its lower fees. Recent data shows that fees on Ethereum’s network have retreated, which explains why stablecoin volume has risen in the past few weeks.
DeFi and RWA market share
The other notable catalyst for Ethereum price is that it is the biggest player in popular areas like decentralized finance (DeFi) and Real-World Asset (RWA) tokenization.
Data shows that Ethereum has a total value locked (TVL) of over $133 billion, higher than other layer-1 and layer-2 blockchains combined. Solana has a TVL of over $19.7 billion, while Bitcoin, BSC, Base, and Tron have a TVL of over $4.7 billion.
Ethereum houses some of the biggest players in decentralized finance like AAVE, Compound, EigenLayer, and Spark.
It is also the largest blockchain in the $24 billion RWA industry. Data shows that it holds over $7.5 billion worth of RWA assets. It is followed by ZKsync Era, Stellar, and Aptos, which hold $2.25 billion, $442 million, and $429 million.
This growth explains why Ethereum demand has jumped in the past few weeks. SoSoValue data shows that spot Ethereum ETFs had inflows worth over $71.2 million on Tuesday, a day after they added $100 million.
They have added over $1 billion in inflows this month, up from $564 million in May to $66 million in April this year. This increase has brought its cumulative ETF inflows to $4 billion.
Ethereum price technical analysis
The daily chart shows that the Ethereum price bounced back from a low of $1,378 in April to $2,447 today. It recently formed a bullish flag pattern, comprising of a vertical line and a rectangle channel. This flag formed at the 50% Fibonacci Retracement level.
Ethereum dropped below the flag pattern’s lower side this week as the crypto market crashed. It has now bounced back and retested the lower side of this flag. A break-and-retest pattern is a popular continuation sign.
Therefore, there is a likelihood that Ethereum price will resume the downtrend as long as it remains below the lower side of the flag. If this happens, the next point to watch will be at $2,120, the lowest point this month.
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