While the price of Ethereum was busy hitting the high heavens in the last few hours, experts were concerned about the factors behind it. According to analysts and experts, the total number of daily Ethereum transactions carried out daily on the network has skyrocketed.
According to numbers put together by analysts of the on-chain analysis platform, Messari, nothing less than $12 billion worth of transactions are now carried out daily on the Ethereum network. In retrospect, this means that Ethereum completes about $3 billion transactions more than Bitcoin daily.
Institutional investors are moving to Ethereum
The new daily transaction is a milestone figure and has been the driving force of the recent rally that Ethereum has experienced in the past few weeks. Even though its rally looks identical to that of Bitcoin, Ethereum has been making a case for trading bullish against the leading digital asset. Ethereum previously experienced a massive price surge around October last year, and analysts noted that the digital asset had the DeFi sector to thank for it. Analysts have once again pointed to the DeFi sector as the major trigger for this bullish run because the sector has been pulling in massive numbers when it comes to daily transactions.
Also, experts have noted that high-value investors are now moving their funds to Ethereum because the digital asset is primed to make a massive bullish run compared to Bitcoin. Bitcoin is presently moving in a close range of $34,000 to $38,000, and traders would instead pool their funds in a market that would trade upward than trade in a range. Another reason is that the weekly price surge in Ethereum has significantly surpassed that of Bitcoin, with the first and second digital asset recording about 5% and 21% surge this week.
Ethereum uses have surpassed that of Bitcoin
Even though experts have noted that the increased daily transaction volume is a good one for the coin, they are still wary about the digital asset’s long-term side effects. One thing that would eventually hurt the price of the asset and send it crashing is if it moves to its price discovery phase after touching its all-time high. Also, network fees would be the deciding factor after the surge as traders would not want to pay high for making transactions anymore.
Notably, Ethereum’s recent price surge has been seen as a milestone achievement on the part of the coin because it is doing well compared to that of the leading digital asset, Bitcoin. Ethereum has surpassed Bitcoin when it comes to real-life uses and adoption. While Bitcoin is being used for payments and trade-related activities, Ethereum has been used for things ranging from ICOs to retail trading and has also been used in the DeFi sector for various uses. Bitcoins’ biggest inflow has been coming from high-value traders, while Ethereum has experienced patronage from various entities in the market.
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