Ethereum price corrects slightly but near-term target still fixed at AUD$6.8k

Posted: 12 November 2021 6:36 pm
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ETH's monthly gains currently stand at an impressive 36.7%.

  • The Ethereum network's native gas fee rates have been hovering close to the US$50 (approximately AUD$68) mark recently.
  • The total amount of capital locked into various ETH-based smart contracts currently stands at US$94 billion (AUD$128 billion).
  • Ethereum's market dominance index (DI) is presently at 19%.

Ethereum, the world's second-largest cryptocurrency by total market capitalisation, has been on a tear recently, with the asset recently scaling up to an all-time high of AUD$6,686 (US$4,878) only to showcase a slight correction due to certain profit-taking activities that were witnessed when the industry hit a total market cap of US$3 trillion. At press time, ETH is trading at AUD$6,530.

The recent uptick in ETH's network usage resulted in not only the currency's pricing increasing substantially but its associated gas fees surging to relative highs. Over the last couple of days, the average cost of facilitating a transaction on the Ethereum ecosystem has been hovering around the AUD$70 range. Despite this massive rise, technical data suggests that it is only a matter of time till ETH breaks through the all-important AUD$6.8k (US$5k) psychological threshold.

Furthermore, in spite of the aforementioned transaction charges, the total value locked across Ethereum's various smart contracts recently rose to an all-time high of US$94 billion, representing a growth of more than 40% over the last 90 days. Such data clearly goes to show that there is a growing appetite for ETH-based DeFi products as well as other associated offerings, such as non-fungible tokens (NFT), price oracles and decentralised marketplaces.

How to buy Ethereum

DEXs severely outpacing CEXs but Binance is still king

As per data released by crypto analytics firm Chainalysis, the total number of decentralised exchanges (DEXs) in existence has increased by more than 100% between Q1 2019 and Q3 2021 while the amount of centralised exchanges (CEX) has remained nearly the same. The increased popularity of these platforms can in large part be attributed to the growth of the DeFi market, which has grown from US$25 billion to over US$112 billion over the course of 2021 alone.

That said, Binance still continues to tower head and shoulders above all of its closest competitors, despite the exchange being faced with increased regulatory scrutiny over the last couple of months. According to information available online, Binance registered a total of 171 million visitors for October, showcasing a 12% growth from the month prior. Binance's closest competition is Coinbase, a platform that witnessed a total of 91 million visitors last month, followed by PancakeSwap, a BSC-based DEX that saw 25 million visitors.

ETH2 staking service reaches stage 2 cap in under a minute

The recent launch of Ethereum 2.0 staking service Rocket Pool saw its stage 2 cap being met in a meager 45 seconds as per info made public by Allnodes. To be a bit more specific, within the first 48 hours of going live, Rocket Pool was able to amass 237 node operators globally, with a total of 1,088 ETH being staked in its crypto pools.

Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.


Disclosure: The author owns a range of cryptocurrencies at the time of writing.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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