- Market analysis firm Blockfyre identifies 4 key factors that suggest that Ethereum is undervalued in the crypto market.
A recent research conducted by market analysis firm Blockfyre has shed light on four key indicators that suggest that Ethereum has remained undervalued since its outset. A part of the data was contributed by analytics firm, Santiment.
Blockfyre, evaluating the success of Ethereum, released a report which showed how factors such as increased developer activity, escalated gas usage, increased average holding period, miner’s balance, among others, show a favorable pattern which highlights the odd juxtaposition in Ethereum’s value. Blockfyre co-founder, Simon Dedic stated:
“It’s really interesting that both miners and investors have been holding ETH since 2018. It seems like a majority agree that these prices are just not worth selling ETH.”
The growth of the network is manifested in the steady increase of gas usage, which reached a new all-time peak of USD 61.67 million on 23 May 2020. For the uninitiated, gas is burned when users make transactions on the Dapps on the Ethereum blockchain. The average ETH held by miners and investors has also doubled since 2018. The firm stated that these factors may lead to a spike in the demand and valuation of the cryptocurrency in the coming future.
Image Courtesy: Pixabay