- Dormant Ethereum, one of the key ingredients that sparks a bullrun, shows signs of moving.
- As total value locked in the decentralized finance (DeFi) ecosystem gets closer to a new all-time high, Ethereum dominance increases.
- Nikhil Shamapant, independent Ethereum analyst and author of the "Ethereum Triple Halving paper," has a bullish outlook on the altcoin and sets a price target of $150,000.
The top two addresses with the highest Ethereum balances on Etherscan are the ETH2 staking contract with over 7 million ETH and wrapped Ether (WETH) with 6.7 million ETH. The surge in staked Ethereum is driving altcoin's dominance in the crypto market higher.
Ethereum dominance increases as the altcoin prepares for second leg of the price rally
Currently, Ethereum is trading at $3269, and its dominance is at 17.9%. A direct correlation has emerged between Ethereum's price and dominance. With the price increase, the altcoin's dominance has increased consistently over the last five months.
Alongside Ethereum, the volume of wrapped Ethereum used to pay for gas or transaction fees for contracts executed on the network has noted a steady rise. WETH now accounts for nearly 6.7 million Ether, supporting the increase in the second-largest cryptocurrency's market dominance.
One of the key indicators of a bull run, the movement of dormant Ethereum, was recorded earlier today by Santiment data. Ethereum's mean Dollar invested age curve represents the average age of the Ethereum moving on the blockchain network, and it has significantly flattened.
The movement of Ethereum that was held for a long time indicates the second leg of the altcoin's price rally.
Ethereum's mean Dollar invested age.
Independent Ethereum analyst and author of "Ethereum, The Triple Halving," Nikhil Shamapant, remains bullish on the altcoin. In a recent interview with Divya Narendra, CEO, and co-founder of SumZero, Nikhil Shamapant set a new price target for Ethereum at $150,000.
Shamapant explains how Ethereum staked in the ETH2 contract reduces the total number of Ether in circulation and drives the price higher through an enforced shortage.
One thing I've been really trying to pound the table on is that staked ETH it's like economically enforced hodling right. It's always going to be staked; there's going to be a circulating supply of staked ETH, separately there's going to be a circulating supply of unstaked ETH. There's no fear or cultural change that's going to cause these hodlers to suddenly sell.
According to FXStreet analysts, looking at the market capitalization and dominance of Ethereum, there have been four consecutive up weeks. Any close below $2900 would be a bearish development; on the upside, $3587 is the level to watch out for a bullish breakout.
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