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Ethereum Has Room To Rally: Santiment, a Blockchain Data Firm
Blockchain analytics firm Santiment believes that Ethereum is primed to move higher due to two on-chain trends.
The company on August 31st that the number of ETH being held off exchanges is on the rise, suggesting accumulation. Simultaneously, the top 100 non-exchange addresses (meaning Ethereum whales) have cumulatively increased their holdings by 8.2% in the past five weeks, also suggesting accumulation:“$ETH’s total coin supply held off exchanges continues to rise, and is +3.63% since bottoming on March 24, shortly after Black Thursday. Meanwhile, the top 100 non-exchange addresses have increased bags by +8.2% in just 35 days. Both are bullish signals.”These two trends should lead to growth in Ethereum’s price due to basic supply-demand dynamics, which dictate that an increase in demand should result in an increase in an asset’s equilibrium price.
Chart of ETH's price action over the past few months with on-chain data by crypto/blockchain data firm Santiment (@Santimentfeed on Twitter).
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Launch of Yearn.finance’s yETH Could Boost Price Further
The launch of Yearn.finance’s yETH product is likely to spur investment activity in Ethereum, driving prices even higher.
When it launches in the coming days or weeks, yETH will be an investment vehicle that allows investors to obtain high yields on their Ethereum deposits. Analysts say that the launch of this product will cause an influx of capital to flood into Ethereum. In fact, some of ETH’s 10% rally over the past two days has been attributed to hype around Yearn.finance’s yETH.Related Reading: These 3 Trends Suggest Bitcoin Is Poised to Bounce After $1,000 Drop
Photo by on Price tags: ethusd, ethbtc Charts from 2 On-Chain Signals Show Ethereum Has Room to Run After 10% Jump