Ether (ETH) Price Could Log New Bull Run As Dormant Investments Start Moving
The ETH price has been on a roller coaster ride since the turn of the year, hitting an all-time high of $4,380 in April. The uptrend has slowed down in the past few days, with the top altcoin declining below the $3,200 support level.
Santiment Data Shows Possible ETH Price Uptick
Per a tweet from crypto analytics site Santiment that tracks over 2000 digital assets, the ETH price could rally higher in the near term. The platform pointed to one macro indicator that shows immense price shifting potential.
The data shows that the ‘mean dollar invested age’ for ETH has been activated as dormant investments in the world’s second-largest crypto start moving considerably.
“Ethereum’s mean dollar invested age curve is flattening significantly this past week. This means dormant investments are showing signs of moving substantially again, and it’s one of the key ingredients to sparking another ETH bull run,” Santiment noted.
The analysis is extremely bullish for ETH, as it shows that investment dollars that have been locked up in addresses are now flowing into the crypto market following a period of slowed activity. The result is likely to be a more intense shift in market sentiment, resulting in higher Ether prices.
Could Ethereum Topple Bitcoin’s Market Dominance?
Ether has been one of the best performing crypto assets over the past twelve months, accumulating gains of nearly 1000%. BTC, the crypto market’s most influential asset, has only risen 300% in that period, leading to speculation that the king coin could lose its dominance to ETH in the long run.
Per a recent report by banking giant Goldman Sachs, Ethereum has a great chance of surpassing bitcoin’s $816 billion market cap in the coming years. The main reason for this assumption is that the Ethereum network has the capacity to develop and implement decentralized apps, while its older sibling cannot.
While BTC was designed to be a legacy cryptocurrency that works purely as a store of value, ETH has a much higher utilization. The bitcoin rival represents the future of smart contracts and programmable currency as it can build real-world apps in its infrastructure and still serve as a store of value.
At the heart of the Ethereum network are DeFi apps, which grew a whopping 2000% last year and currently have a total value of $79.46 billion locked up in various protocols.
The ETH Network Shows More Promise than Bitcoin
Analysts and crypto market participants in a recent Forbes panel argued that Ethereum and its native cryptocurrency have more potential to appreciate in the long term than the Bitcoin Network.
The panelists cited factors such as the latest EIP-1559 upgrade that is set to overhaul the gas fee structure on Ethereum as the primary reason for their prediction. The booming NFT market is also a key factor when considering the future price target for ETH, which the Forbes panel set at $19,842 by 2025.