Ethereum (ETH) Shoots Another 5.5% Today As Several On-Chain Metrics Improve

02 Jun, 2021

Senior Journalist

Expertise : Cryptocurrency, Blockchain, Macro Finance

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.   He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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The world’s second-largest cryptocurrency Ethereum (ETH) is showing strength today registering another 5.5% gains. At press time, the ETH price has crossed $2728 with its market cap at $314 billion. This comes as several on-chain metrics continue to improve for Ethereum with ETH now eyeing a move to $3000 levels.

As on-chain data provider Santiment reports, the ETH active addresses are once again on the rise. This means that the investor activity on the platform is increasing once again. The rebound happens after last week’s panic selloff.

On the other hand, the daily active deposits of Ethereum (ETH) at exchanges are once again on a decline. Although the number is relatively higher compared to the last six months, the declining ETH supply is a bullish indicator.

However, there’s one indicator that suggests caution at this point. The 36-day MVRV ratio (market-value/realized-value) hasn’t dipped to the negative. The Santiment report states:

36-day MVRV haven’t dipped into negative at all. So there’s a lot more profits to be taken by long term holders which is kind of scary. But when just examining this bull cycle, it’s fairly low, lowest since November. At the very least it can allow for more price appreciation. Even compared to previous rally.

Ethereum vs Bitcoin

Coming to the classic all-time comparison, Ethereum has flipped Bitcoin in several on-chain metrics over the last month. On a month-on-month basis, the total adjusted on-chain volume of Bitcoin declined while that for Ethereum nearly doubled.

Last month, the Bitcoin miner revenue declined 15% to $1.45bn. At the same time, the ETH miner revenue shot 42.8% to a new ATH of $2.35bn. This was the first time in four years since June 2017 that the Etheruem miner revenue has surpassed the Bitcoin miner revenue.

Another bullish indicator for Ethereum was that the ETH futures volume surge a massive 94.7% to a new ATH of $1.7trn.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.