Hey, I know you're probably busy so let me just show you five charts that show
pretty bullish indicators for Ethereum in less than five minutes
What's up everyone, my name is Ben, I'm a former JP Morgan investment banking
analyst and welcome to the best channel for tech investing
Before I get started if you want a chance to win 10% of my May 2021 YouTube
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Okay first up is the number of active addresses and transactions
This chart is pretty self-explanatory and what's most
important to note is that the number of active addresses and transactions are at
an all-time high This is one data point that helps show
that the rise in Ethereum's price is not just about FOMOing investors who are
trying to speculatively buy in but that there is some fundamental data
that backs Ethereum's jump in price The large increase in addresses and
number of transactions of Ethereum just indicate that there is a lot more usage
and adoption, which is not surprising given that
Ethereum has the largest smart contract ecosystem in crypto
I do want to caution though that we did also see a spike in both of these
metrics right before the crash in 2018 so a big part of this increase is likely
also due to Ethereum's jump in price next up is percent on exchanges versus
percent on smart contracts As you can see the percent balance on
exchanges has been on a decline while the supply in smart contracts has
been on an incline This is another bullish indicator
because it just shows that people are using Ethereum for its intended purpose
of smart contracts rather than just keeping it on exchanges
and using ethereum as more of a speculative investment
I think one of the fairest critiques of the crypto space is that everything is
just kind of based on hype rather than fundamentals
so I see this as a very positive sign for Ethereum that
more of it is being used for its smart contracts, which is really its intended
purpose This leads to the next chart of total
value staked versus price As you can see there's a sharp increase
in Ethereum that's being staked and I believe this is contributing to
ethereum's increase in price As you may already know Ethereum is
transitioning from a proof of work to proof of stake method, which recently
allowed holders to stake their ethereum and earn rewards
When you stake any cryptocurrency basically what you do is lock it away
for a certain period of time which decreases the supply available for
trading. With that said do keep in mind that a relatively small portion of
Ethereum is being staked compared to other cryptocurrencies but that's also
partially because Ethereum just started allowing users to stake, starting
December 1, 2020 Next up is Bitcoin versus Ethereum
market cap dominance As you can see, Ethereum has lately been
gaining in market camp dominance versus Bitcoin
the reason this is important is because I believe investors are starting to see
more and more that Ethereum may be the better investment given that it has a
lot more use cases as a smart contract platform
versus something like Bitcoin which is essentially just digital gold and
doesn't really have many other use cases. Of course, this
argument is not new and Ethereum even almost overtook Bitcoin back in 2017
But I believe that 2017 was a much different time versus now where
a lot more people and investors are becoming educated on the capabilities of
Ethereum especially with the 2.0 upgrade versus Bitcoin and so I think in
addition to that a lot of investors just see a lot more upside with Ethereum
given that it's a smaller market cap, and so combining those factors really
together I think is what's going to propel Ethereum forward
into increasing its dominance versus Bitcoin. This all leads to the last chart
on open options interest. Looking at the
July 30, 2021 expiry chart you can see that traders are extremely
bullish on ethereum over the next few months
In particular you can see traders largely expect Ethereum to rise to five
thousand dollars by the end of July and trading volume is much more heavily
skewed towards calls which are bullish bets
versus puts which are bearish bets Of course, traders are very fickle and
everything can change in a moment's notice if we enter a bear market
Okay so there you have it five charts that show pretty bullish indicators for
Ethereum, let me know what you think in the comments below
and I'm gonna be making future videos that go more into detail about Ethereum
and Ethereum 2.0 so be sure to be on the lookout for that
and thanks so much for tuning in as always, catch you in the next one peace
[Music] out
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