Cryptocurrency analysts believe that there is still a lot of room for growth in the market. Apparently, Ethereum, one of the biggest cryptocurrencies in terms of market cap, still shows huge potential.
Blockfyre looked at four key indicators in coming up with a careful analysis of the ETH’s value. These are indicators such as development activity, gas used, mean dollar invested age, and miner’s balance.
1) We charted several progress indicators for Ethereum against its price development since its genesis.
Besides other factors, the following 4 indicators have caught our interest the most.
We feel comfortable to state that Ethereum is significantly undervalued at current prices pic.twitter.com/RezhESApZk
— Blockfyre (@blockfyre) May 26, 2020
Development activity has shown no signs of slowing down
According to Blockfyre, ever since the inception of the ETH back in 2014, developments made on the platform have been consistently increasing.
The data reflects that developers on the ETH blockchain have not stopped working on improving the network regardless of the price actions it witnessed. Even after the ETH’s drop in value from the highs it achieved in 2018, development activity has been on the rise.
Current figures are good news for its investors, said Blockfyre. This is because continuing developments on the network could lead to new use cases for the ETH and potentially help further its adoption. Additionally, these activities help keep the current state of the network healthy.
Other indicators show that ETH is significantly “undervalued”
Gas use in the network has also been on the increase as well. Blockfyre noted that it signals continuous transactions on the ETH network, as well as increased adoption.
Gas use in the network indicates the fees paid to finalize transactions on-chain. An increase or decrease in these figures can be a helpful gauge on analyzing the use of ETH and its over-all activity. So far, figures on gas use show a positive outlook for ETH transactions.
Mean Dollar Invested Age appeared to show a constant increase too. According to Blockfyre, its rise indicates that investors are more inclined to hold on to their assets than move them elsewhere. This has been rising since 2018, even hitting all-time highs from time to time.
Miner’s balance indicates the outstanding balance held by ETH miner’s on their own addresses. According to the data presented by Blockfyre, miner’s balance did not stop over the year.
What this shows is that miners generally prefer to hold their ETH rewards than sell them to cover the expenses they incurred in running mining operations.
Key indicators reflect that ETH is significantly undervalued. But given the figures from these indicators, ETH is showing a lot of potential for growth down the road.