Real Vision analyst Jamie Coutts believes Ethereum (ETH) could be on the cusp of a massive rally based on several market conditions.

Coutts says on the social media platform X that momentum is building in the crypto space which could signal that the smart contract platform is about to surge.

However, the analyst warns that ETH’s network activity needs to see a significant increase before an uptrend is ignited.

“While the conditions for a rally are forming, Ethereum will struggle to rally without a resurgence in activity. Fees are at four-year lows.

On the positive side:

  • Layer-2 (L2) adoption has been strong, with DAUs (daily active users) +200% in the past year.
  • Global liquidity is turning higher.
  • Stablecoin supply increasing, nearing ATHs (all-time highs)
  • RWA (real-world asset) tokenization is up 70% to $11.3 billion year-to-date.

On the negative side:

  • Some forward cashflow estimates are likely adjusting to lower fee expectations and a growing realization that L2 value accrual is at the expense of the L1 (layer-1) long term.”

Ethereum is trading for $2,761 at time of writing, up over 4% in the last 24 hours.

The analyst also notes that revenues are down across the whole crypto ecosystem on a year-over-year (YoY) basis.

“Crypto Ecosystem Update across two key metrics: active addresses (DAUs) and fees (July-2024) 1. YoY aggregate performance: DAUs up 150%. Fees down 20%.”

Lower fees indicate diminished network activity as users are not competing as much to transact on crypto networks.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Follow us on X, Facebook and Telegram

Generated Image: DALLE3



Read the full article here

Share.

Leave A Reply

Your road to financial

freedom starts here

With our platform as your starting point, you can confidently navigate the path to financial independence and embrace a brighter future.

Registered address:

First Floor, SVG Teachers Credit Union Uptown Building, Kingstown, St. Vincent and the Grenadines

CFDs are complex instruments and have a high risk of loss due to leverage and are not recommended for the general public. Before trading, consider your level of experience, relevant knowledge, and investment objectives and seek financial advice. Vittaverse does not accept clients from OFAC sanctioned jurisdictions. Also, read our legal documents and make sure you fully understand the risks involved before making any trading decision