Ethereum recently hit an all-time high over the $2,000 mark, which has caused a buzz in the digital asset space. The coin, which recently hit the $2,150 price point, surprised many as it had struggled to have significant gains above the $2,000 resistance. Asides from Ethereum, other assets have also had gains, and this shows that the industry is growing at an impressive rate, especially during its bullish season.
While the bulls have been a primary reason for the coin’s growth, analysis shows that more activities could be linked to the coin finally hitting its ATH. First of which would be the rising network activities, and then the declining deposits on exchanges.
Ethereum records higher active addresses
The crypto impressed many people in the digital asset space as it is one of the only coins to retake the ATH and move above the charts. Most data experts had expected this price growth as they notice the adoption of the Ethereum network and the growth of new crypto addresses.
The industry has gone through some notable bearish seasons, like in late March where the assets had significant corrections, and that took up billions from the sector’s market cap. Like other assets, Ethereum dropped to as low as $1,500 when the market went into the red. The drops might have pushed a world of new highs as the digital asset continued to add significant gains.
The asset has been ending seven consecutive months on the green, and that could have helped the digital asset hit the anticipated $2,000 mark as it moved upwards. The continuous use of the Ethereum network is seen with mixed feelings as people understand that the blockchain is the home of many DeFi and NFT projects. This has made the network crowded and has caused traders to pay more for transactions. The ETH network’s transaction fees have gone as high as $22, which is unacceptable for small-scale investors.
Glassnode reveal the cause of price growth
The asset has now achieved an iconic new high of $1,250, as it would likely continue to uptrend as the industry continues the network use. One of the sources for this conclusion is an on-chain data firm, Glassnode, which explained that the increased activities are the major cause of the new changes in the digital asset industry. This price growth would likely continue as new activities could influence more value gain, enriching Ethereum holders.
Based on a new analysis from Santiment, the firm explained that the new activities on the network and the increased number of addresses on the blockchain could be the major reasons for the price growth. Asides from that analysis, the decrease of Ethereum deposits on the trading platform shows that people have been holding their ETH and have refused to sell.
Selling pressure is the major cause of price drops, which has decreased rapidly for the crypto as it sees lesser selling pressure. Also, retail investors have continually bought high volumes of Ethereum, which has caused the crypto to skyrocket and jump within the last few days.
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