The essential metrics indicate a greater use of the Ethereum network by its users. This cryptocurrency seems to have an interesting growth potential for the coming months
In view of the increase of the capitalization of cryptocurrency, with a 49% so far this year, some reasons were considered to explain why Ethereum has a potential expansion as one of the most solid smart contract platforms within the industry.
Increasing Number of Active Addresses
After a year’s sustained decline, the Difficulty Adjustment Algorithm (DAA) has been rising during the last three months, reaching a significant increase. It was among the 284,000 active addresses per day in late April, with an increase of 65% after its annual minimums of 170,000 registered users on February 10th.
Similarly, the number of unique ETH addresses continues growing at a rapid pace and now there are more than 60 million, with an average of 65,000 new addresses per day during the last month. Although addresses cannot be eliminated, this metric indicates a greater demand and a growing use of the Ethereum Blockcahin.
Faster Block Generation and Reduced Inflation
The time for generating new blocks is currently about 13.36 seconds, close to the fastest in Ethereum’s history. Therefore, the block counting per day has grown considerably, to almost 6,500 blocks on May 7th.
The creation of a larger number of blocks originates an increase in circulating supply. However, the rate of issuance (inflation) has remained relatively low, close to 4.72% per year, notably lower than the 26.82% and 5.2% accumulated by Ripple and Litecoin.
Market with Attractive Rates and Gas Prices at Record Levels
The second currency regarding market capitalization works within the second public Blockchain, after Bitcoin in terms of the market around tariffs and commissions. Messari says that ETH tariffs recently reached US $66,345.50, lower than US $567,041.32 of Bitcoin (BTC) and 62 times higher than Litecoin (LTC), which is in the third position with US $1,068.03 per day as a way of tariffs.
In the same vein, the internal tariffs per Gas token transaction and execution of contracts within the Ethereum network have reached their highest point, with 49,103 million Gas tokens used on May 7th, which indicates an increase in the Blockchain’s usability.
Decentralized Applications within Ethereum
Despite the reduction in the number of DApps that integrate Ethereum’s Blockchain, the prevailing ones still move high volumes of tokens. In April, a total of 776,000 ETH in DApps were moved, which surpassed last December’s maximum of 765,500 ETH.
Besides, the average daily value per transaction in US dollars has been falling since May 2018 to be around US $600 per day, much lower than its maximums of US $20,000 in June 2017. A reduction in the average transaction value can be interpreted as a greater use of decentralized applications, since DApp-related transactions generally have a low value but a high quality, which tends to reduce the general average of transactions.
These are some of the reasons why Ethereum can be considered one of the most attractive and reliable Blockchains within the ecosystem. The growing number of daily users, the little time required to generate new blocks, the low levels of inflation, the attractive rates, the low cost per transaction and the high volume of tokens are definitely key factors for choosing Ethereum over other crypto assets.
By Willmen Blanco