Here’s What Might be Driving the Price up

TL;DR

• Ethereum (ETH) has recently seen a significant increase in its market performance.
• Various factors possibly contributing to ETH’s surge include the increased trading volume and a rise in daily active addresses.
• The article discusses future projections for ETH, including opinions from analysts and potential impacts on Ethereum-related cryptocurrencies.

Why is the Ethereum (ETH) Price up?

Ethereum’s native token – ETH – was among the best-performing crypto assets on December 28, with its price surpassing $2,400 (the highest level since May 2022). Consequently, its market capitalization briefly exceeded the $292 billion tag. Despite retracing from its yesterday’s peak, ЕTH is still up around 13% in the past 30 days.

ETH’s price increase is in line with the development of other important on-chain metrics.

For instance, the Total Value Locked in the network has increased from around $25b at the beginning of the month to almost $30b at the end.

Moreover, the on-chain trading volumes of Ethereum have also seen an uptick, remaining above $1 billion per day for the larger part of December and exceeding $2 billion on December 28th.

Ethereum daily active addresses have jumped, too. YCharts estimated that their number hit almost 500,000 on December 28, representing a 33% increase compared to the observed data a month ago.

The Recent Altcoin Resurgence

ETH’s price jump is also part of the overall Altcoin rally. Despite slightly retracing in the past few hours, Binance Coin (BNB), Solana (SOL), Polygon (MATIC), Polkadot (DOT), and more are well in the green for the last week, while Bitcoin (BTC) has experienced a minor correction.

The aforementioned trend has led to a reduced BTC dominance. This is the metric that tracks its share relative to that of the rest of the market, and it’s currently sitting at around 47.8% (per CoinGecko), down from 50% at the beginning of December.