Although some on-chain activity for Ethereum [ETH] is analogous to the conditions before the worth rallied to its all-time high earlier in 2018, it didn’t demonstrate the similar bullish behavior as in 2020.
In line with a recent official report published earlier in July from Xangle Research on Decentralized Finance [DeFi] in Q2 2020, research analyst Jehn Kim determined that on-chain transaction volume on the Ethereum blockchain hiked roughly by around 62%, which is a 52-week high as observed on 23rd June. Transaction fees also rose approximately by 688%.
The analyst revealed that these on-chain stats “partially resemble the spike seen during the bull run in 2017-2018,” when Ethereum [ETH] reached its all-time high price of $1,396 USD.
“Ethereum’s on-chain indicator activity must be reconsidered,” said Kim, noting that Ethereum had only reached $230 USD in Q2 despite the similar on-chain activity.
DeFi & Stablecoins Changing The Landscape Of Blockchain
Though the on-chain data may are similar, the conditions of Q2 2020 are markedly different to those before the 2017-2018 bull run. The worth of Ethereum and most altcoins dipped to yearly lows in March following the cryptocurrency bloodbath, eventually recovering in late May.
Additionally, DeFi tokens and stablecoins are changing the landscape of the blockchain by driving transaction fees to two-year highs, which were above those of Bitcoin [BTC] for the primary time. The amount of daily transactions on Ethereum didn’t compared enough in Q2 to its ATH of 1,349,890, only passing 1,000,000 this year in late June.
It wasn’t until Q3 that some of the impact of the addition of DeFi tokens and an increase within the popularity of stablecoins was felt on the blockchain. The Ethereum blockchain overtook Bitcoin’s for the primary time in history to become the foremost used, having settled $508 Bln in transactions for 2020 as of 21st July.
ETH is priced at $323.42 USD at the time of writing, having surged 36.8% in the week .