- Ethereum on-chain metrics signal peak accumulation by large wallet holders, traders are bullish on the altcoin.
- Analysts believe that altcoin is bootstrapping the metaverse through the NFT projects built on the Ethereum network.
- $113 million worth of ETH has been burned since London Hard Fork on OpenSea, a peer-to-peer NFT marketplace.
Cryptocurrency market capitalization has hit $2.38 trillion overall as Ethereum’s dominance rises to 20%. The altcoin has posted over 400% gains since the beginning of 2021.
Ethereum accumulation by whales likely to push ETH to all-time high
Addresses holding Ethereum for over a year have increased consistently, hitting all-time high levels. This implies that the outlook among long-term holders is still bullish. Interestingly, few active wallets are holding Ethereum between $3500 and $3800 level.
Analysts expect inactive wallet addresses to resist selling or exchanging their holdings in the short term. This reduces the selling pressure on exchanges, offering the altcoin further room for its upward climb.
In/Out of the Money: Ethereum.
Despite increased competition from NFT projects on Ethereum alternatives like Solana and Cardano, analysts still consider ETH to be powering the metaverse. Pseudonymous analyst @iamDCinvestor tweeted:
people selling fiat, to buy ETH, to buy NFTs, to earn more ETH, to keep it and use it in DeFi, and buy even more NFTs, (etc.)
you are participating in the bootstrapping of the new global metaverse economy,
and $ETH is its currency
— DCinvΞstor (@iamDCinvestor) September 3, 2021
The increasing popularity of NFTs, alongside the rising burn rate, is feeding the “supply shock” narrative of Ethereum. The most significant contributor to Ethereum’s burn is OpenSea, an Ethereum based peer-to-peer marketplace for NFTs. Based on data from ultrasound.money, OpenSea has contributed to burning 28,624 Ether. The burn rate has increased to hit 4.37 ETH/min.
Overall, analysts have a bullish outlook on Ethereum. Pseudonymous analyst @Thecryptomist has predicted that Ether is likely to hit $5000.
FXStreet analysts have predicted that the altcoin is likely to cross $4100 in the ongoing price rally.
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