Ethereum on the rise: Active users are increasing despite price stagnation!

Ethereum on the rise: Active users are increasing despite price stagnation!

Bitcoin and Ethereum have been showing noticeable sideways movement for weeks, while the market environment has become increasingly volatile. However, a new trend is emerging: recent data suggests that Ethereum may be massively undervalued. According to the analysis of Wall Street Online The number of active Ethereum users rose by a remarkable 16% within a week, while the price remained stagnant. This discrepancy is seen as a promising signal of an impending price increase.

On-chain data shows increasing usage of the Ethereum blockchain, reflected in higher committed capital and transaction volume. The continued interest of institutional investors creates a more stable environment in which price breakouts are less volatile. At the same time, demand for blockchain infrastructure is growing, an area that the market has not yet fully priced in.

Regulatory advances and technological change

Ethereum is currently at the center of significant regulatory debate, particularly with regard to the Digital Asset Market Clarity Act (CLARITY Act), which is intended to provide clear guidance for digital assets. The US Congress is discussing how to distinguish between infrastructure, such as Ethereum, and applications, such as DeFi protocols. Experts like Vivek Raman argue that Ethereum should be considered a public infrastructure since over 80% of all tokenized real-world assets run on this platform.

Technological innovations are also underway. Ethereum co-founder Vitalik Buterin plans to make the platform simpler and more efficient to bring it closer to Bitcoin. The planned Fusaka hard fork is expected to increase data capacity for Layer 2 solutions, while the 3-slot finality approach is expected to reduce transaction confirmation phases. In the future, RISC-V could replace the Ethereum Virtual Machine (EVM) to speed up the execution of smart contracts.

Institutional Interest and Market Outlook

Institutional interest in Ethereum is seeing a surge. BlackRock recently acquired $50 million worth of ETH, adding to the total supply of 1.377 million ETH worth $3.63 billion. The combined effect of increasing network activity and growing institutional confidence creates favorable conditions for the Ethereum price to rise, possibly to the $3,000 mark.

Additionally, Ethereum is showing relative strength in the overall market by outperforming Bitcoin month-on-month. The current price of Ethereum is over $2,500 and the Total Value Locked (TVL) on the network is over $60 billion. Despite these positive developments, Polymarket forecast sees a 26% chance of a new all-time high of $4,868 this year.

Overall, Ethereum and its users are facing exciting times. The combination of regulatory advances, technological advances and continued institutional interest could set the stage for positive developments in the near future. Market participants are watching developments closely as they wait for possible price movements.