The Only Way to Go is Up for Ethereum as it Celebrates its Fifth Anniversary
- Ethereum network and developer activity growing
- Stablecoins growth pushing the demand for ethereum
- Enterprise adoption
- Low one hundreds again or time to go up for ETH
- On July 22, Ethereum celebrated its fifth anniversary.
The network of the second largest cryptocurrency has grown a lot in these five years, processing over 500 million transactions since inception. The network utilization remains fairly stable as well at an average of just under 90 percent.
Ethereum Network And Developer Activity
More than 70 million unique addresses exist on Ethereum while 616,000 were active addresses on June 1st, the busiest in 2019, with the average ETH holding per address being 1.43 ETH.
Earlier this year, the Ethereum network underwent Constantinople upgrade to improve the network and bring it closer to the multi-phase Serenity update that includes the switch to proof of stake.
The difference between $ETH now vs. March 2016:
1. ~$500m locked in DeFi
2. Legit ETH 2.0 progress
3. Resolved identity crisis (PSoV)
4. Institutional adoption coming (e.g. futures)
5. Quiet UX improvements for dapps
6. L2 progress
7. Community maturation
The future is bright. https://t.co/Qo4AFrXesr
— Spencer Noon 🕛 (@spencernoon) July 22, 2019
The developer activity on Ethereum is still strong as it records the highest number of developers working on core protocol with Bitcoin coming in second place and Cardano at third.
An average of 240 active developers was recorded in January 2019, up 23% from 190 in 2019. It also accounts for 8 times more commits than Bitcoin and 20x more than XRP.
As for decentralized applications, out of the top 50 ranked by State of the Dapps, 29 are built on Ethereum.
Interestingly, of the top 50 dapps in different categories, 42 finance dapps are built on Ethereum, including MakerDAO and OmiseGO, 44 exchange dapps are built on Ethereum, including Augur and Uniswap, 42 security dapps are built on Ethereum, including Quantstamp, 43 development dapps are built on Ethereum, including Kauri, Golem, and CryptoZombies.
When it comes to enterprise adoption, per GoodFirms’ Blockchain Development Survey, Ethereum blockchain accounts for 92.3 percent.
Research firms have affirmed of rapid exploration of blockchain by enterprises. Gartner’s June report estimated that blockchain will add $176 billion in value to businesses and $3.1 trillion by 2030.
Stablecoins Growth Pushing The Demand For Ethereum
Almost all of the leading stablecoins such as Dai, Tether, USD Coin, Paxos, and True USD are ERC 20 tokens and whenever these are used in transactions, Ethereum’s native token (ETH)is required to pay gas fees to get each transaction confirmed.
In its weekly report, TradeBlock found that the amount of fees paid to Ethereum network participants has increased “considerably” over time. This growth since January 2018 has been in line with the growth in the on-chain stablecoin transaction.
As interest in stablecoins grows and demand for their use increases, the demand for Ether rises as users are required to purchase the native asset to pay gas fees.
Low One Hundreds Again For ETH
While the Ethereum network is growing, the price of ETH isn’t doing well. Still down 85% from its all-time high, currently, Ether is trading at $210 in the red by 5.08 percent.
“It looks even shittier than it did last week. Still waiting to see any accumulation in green, if that doesn't happen I'm honestly expecting low one hundreds again,” said analyst DonAlt.