• Following the coin’s 50% rally, Ethereum network activity has increased by 48%

  • The Ethereum rally has continued, with a total gain of 50% since the beginning of October, implying that Ether’s on-chain and market data will follow and can provide additional signals to traders.

    Performance of the Ethereum network

    According to the data provided, Ethereum’s network activity has gained traction and has caught up with the coin’s price growth rates; it is currently at 48%. The increase in network activity is usually the foundation of any Ethereum rally.

    Coins fueled solely by speculative interest may not exhibit the same network net growth behind each rally, but in the case of projects such as Ethereum, Solana, or Cardano, dApps and DeFi technologies attract more investment into technology.

    NFT and decentralized finance are the two industries that have brought in more than $100 billion and more than $1 billion, respectively, by 2021. With the growth of the two industries and strong fund inflows into the cryptocurrency market, Ethereum’s capitalization is approaching that of Bitcoin.

    As an indicator, network expansion

    Network growth is typically used as a lagging indicator to confirm bullish cycles. It cannot be used to forecast whether a rally will continue or reverse.

    Previously, the first drop in Ethereum network activity was observed at the end of October, which was followed by a minor 6 percent market correction. Following a brief sell-off, the price of Ethereum increased by 9 percent.

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