As the price value of the second-largest cryptocurrency Ether (ETH) is consolidating, the Ethereum developer activity surges high. According to the recent data, the developer activity on the Ethereum blockchain rises to a seven-month high. The increasing developer activity of the ETH network is indicating a potential trend for the cryptocurrency.
Ethereum’s development activity increases
According to the data shared by the behavior analytics platform Santiment, the development activity on the Ethereum blockchain has soared high reaching the seven-month high. This level has not been seen since the beginning of this year.
This rise in the developer activity of the Ethereum blockchain is a positive sign for the second-ranked digital currency (ETH). Santiment’s data is showing a positive medium trend ahead for the ETH cryptocurrency.
Source: Santiment
Developer activity is the best predictor of a digital currency’s price
The developer activity is believed to be the best price predictor of digital currency according to the professor of the UCL School of Management JP Vergne. In 2017, when he conducted a study, he said, “We found that the best predictor of a cryptocurrency’s exchange rate is the amount of developer activity around it.”
So, the rising developer activity is very crucial for Ethereum’s native cryptocurrency ETH and it may have a positive impact on its price value in the medium trend.
With the increase in Ethereum’s development activity, the user activity of Ethereum has also risen high reaching a record level not seen since the year 2017.
Furthermore, the Santiment report highlighted that the development rates of the Ethereum Github have also spiked to a seven-month high. According to Santiment’s researchers:
“Ethereum is reaching #Github development rates not seen since February (a 7-month high)! $ETH continues to make its case as the most highly innovative network in #crypto, including the many ERC-20’s under its umbrella.”
These three fundamental factors may affect the price value of ETH potentially and the coin might be able to come out of its consolidation phase while setting a new bullish trend in the coming days. Currently, the price value of the coin is standing around $364.
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