Ethereum: Transaction trend analysis
A brief overview of the market
*The price of Ethereum has more than doubled, in early January 2021 the price was 850 dollars, and in March the price of cryptocurrency has already reached the mark of 2 thousand dollars.
In the first week of February 2021, the capitalization set its own record, from the first to the seventh of January, the capitalization of Ether increased by 67%, and now amounts to 184 billion dollars (17% of the total capitalization of bitcoin).
As of March 2021, the capitalization of the entire crypto market reaches 1.71 trillion dollars. That is, the capitalization of the ether is 10% of the capitalization of all cryptocurrencies in the market.
Factors affecting the market today
Here I would like to divide into two categories, internal and external factors.
Among the internal factors that currently determine the market are the complexity of mining and the number of transactions per day.
From the beginning, the number of transactions is growing, and has already surpassed the peak in 2017-2018.
External factors include the state of the world economy and other markets, such as currency and stock. Recently, the Fed chairman said that federal rates would be in the range of 0.00-0.25% at least until 2023. This means that the crypto market will be even more attractive to financiers on Wall Street.
Possible market scenarios
Consider three scenarios of market development, based on the factor of the number of transactions per day.
The first scenario involves reducing the number of ether transactions per day. As a result, the price trend may begin to decline (this is what we saw after the peak of cryptocurrencies in 2017)
The second scenario is the fluctuation of the number of transactions in today's range, as a result the price may fluctuate as in March 2021 (in the range of 1.5 - 2 thousand dollars), otherwise the price may resume growth, and once again overcome the psychological barrier of 2 thousands of dollars.
The third scenario will occur when the number of transactions increases, and here the impact on the price is also ambiguous, because the price can fluctuate within one range (as now), or resume growth.
Conclusions
In the first months of 2021, airtime has doubled and the number of transactions has not decreased, which may indicate that participants expect long-term asset growth.
*The price of Ethereum has more than doubled, in early January 2021 the price was 850 dollars, and in March the price of cryptocurrency has already reached the mark of 2 thousand dollars.
In the first week of February 2021, the capitalization set its own record, from the first to the seventh of January, the capitalization of Ether increased by 67%, and now amounts to 184 billion dollars (17% of the total capitalization of bitcoin).
As of March 2021, the capitalization of the entire crypto market reaches 1.71 trillion dollars. That is, the capitalization of the ether is 10% of the capitalization of all cryptocurrencies in the market.
Factors affecting the market today
Here I would like to divide into two categories, internal and external factors.
Among the internal factors that currently determine the market are the complexity of mining and the number of transactions per day.
From the beginning, the number of transactions is growing, and has already surpassed the peak in 2017-2018.
External factors include the state of the world economy and other markets, such as currency and stock. Recently, the Fed chairman said that federal rates would be in the range of 0.00-0.25% at least until 2023. This means that the crypto market will be even more attractive to financiers on Wall Street.
Possible market scenarios
Consider three scenarios of market development, based on the factor of the number of transactions per day.
The first scenario involves reducing the number of ether transactions per day. As a result, the price trend may begin to decline (this is what we saw after the peak of cryptocurrencies in 2017)
The second scenario is the fluctuation of the number of transactions in today's range, as a result the price may fluctuate as in March 2021 (in the range of 1.5 - 2 thousand dollars), otherwise the price may resume growth, and once again overcome the psychological barrier of 2 thousands of dollars.
The third scenario will occur when the number of transactions increases, and here the impact on the price is also ambiguous, because the price can fluctuate within one range (as now), or resume growth.
Conclusions
In the first months of 2021, airtime has doubled and the number of transactions has not decreased, which may indicate that participants expect long-term asset growth.
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