Ethereum Network Has Catched Up With Price Rise And Now Showing Same Growth Rates
The Ethereum rally continues with a total growth of 50% since the beginning of October, which means that Ether’s on-chain and market data follows and can give additional signals to traders.
Ethereum network performance
According to the data provided, Ethereum’s network activity has gained ground and has caught up with the coin’s price growth rates; it currently stands at 48%. The growth in network activity is usually the fundamental support of each Ethereum rally.
Coins fueled by purely speculative interest may not show the same net network growth behind every rally, but in the case of projects like Ethereum, Solana or Cardano, dApps and DeFi technologies attract more investment in the technology.
In 2021, NFT and decentralized finance are the two industries that have brought in more than approximately $100 billion and more than $1 billion, respectively. With the growth of both industries and strong inflows into the cryptocurrency market, Ethereum is moving closer to Bitcoin’s capitalization.
Network growth as an indicator
Network growth usually acts as a lagging indicator and is used as a confirmation of bullish cycles. It cannot be used to predict the continuation or reversal of a rally.
Previously, Ethereum’s first drop in network activity was seen in late October, followed by an insignificant 6% correction in the market. Right after a short sale, the price of Ethereum jumped 9%.
At press time, Ethereum is trading at $4,494 with a 2.8% price decrease while closing the previous trading day with a 2.3% profit. Previously, U.Today reported that the Ethereum Foundation sold its holdings for $ 90 million.
