Here are the reasons why the price of Ethereum (ETH) is going up. ETH is experiencing a month of September which has now become positive. At the end of August the cryptocurrency in second place for market capitalisation was worth just over 160 dollars, today 1 Ether is worth 210 (data: CoinMarketCap).
Ethereum has recorded a +30% in a few days.
- Ethereum (ETH) hashrate is on the rise
Ethereum’s hashrate is recovering, following the growth trend started in the first part of the year.
Just before August, the climb stopped, with a slight correction of the hashrate towards the levels of July 2019. In September, on the other hand, the value of the hashrate slowly began to rise again, up to the current values, which coincide with the peak of this year.
- The use of GAS is at an ATH
In the last few hours, one of the key factors relating to the use of the Ethereum network has set a new absolute record. It is the GAS of ETH, a parameter related to the activities that are performed on the decentralised network of the cryptocurrency: when performing a transaction involving ETH, an ERC20 token or an operation within a smart contract it is necessary to use the GAS to pay the network fees.
Vitalik Buterin recently proposed to increase the GAS limit to temporarily address the problem of congestion in the ETH network.
Looking at the Etherscan graph it is possible to notice that on Tuesday, September 17th, 2019 the threshold of 51.8 billion GAS units was reached, a value never attained before. The statistics concerning the percentage of network usage also confirm the recent peak of activity, which has brought the ETH network to around 95% of its capacity.
- ETH fees exceed those of BTC
The fees to be paid for an Ethereum transaction have exceeded those of the Bitcoin network. This indicates a high rate of network usage.
- DeFi doing well
DeFi, the abbreviation for Decentralised Finance, uses blockchain technology, smart contracts and/or cryptocurrencies to provide financial services to customers, such as loans, payments, remittances, derivatives or investments. Most DeFi projects are based on Ethereum.
Through the DeFi protocols, loans of $500 million have been generated and the amount of ETH used in DeFi projects is at an ATH.
9/10. $500 million of loans have now been originated on #DeFi protocols—an impressive milestone. (h/t @LoanScan_io) pic.twitter.com/XNKwSIn4hf
— Spencer Noon (@spencernoon) September 17, 2019
- The number of tokenised assets is growing
Several assets are moving to the Ethereum blockchain. Two significant instances just this week. Santander announced a $20 million bond based on the Ethereum blockchain. Whereas two days ago, the Harbor startup tokenised the shares of four real estate funds worth about $100 million.