Forecasts involving ether in the cryptocurrency market are very positive for the course of this coming year. Between different aspects, almost half of investors believe that Ethereum is Bitcoin's main competitor. The CyptoVantage survey surveyed a thousand Americans, in which 47% they want crypto to surpass the current market leader.
Other data about Ethereum was recently released. The “Signals Report for the 2nd quarter of 2023”, carried out by investment company Fidelity Digital Assets in 18 July, confirms the positive outlook for ether in the long term. According to the report, different factors contribute to this scenario.
In addition to technical characteristics relating to the crypto itself, the network burn rate compared to coin issuance, the “momentum of new addresses” and the growth in the number of network validators would justify this optimistic outlook for the coin.
Increase in new addresses
Still according to the Fidelity report, since The Merge update, in September of 2022, the net issuance of Ethereum resulted in a net decrease of over 700 mil ether. But, other than that, data collected about cryptocurrency has shown a healthy adoption of the Ethereum network as a whole.
Segment analysts have stated that there has been an increase in Ethereum addresses carrying out transactions for the first time. This demonstrates how adoption is in full swing, favoring positive discourse about cryptocurrency. Like this, there was an increase in 15% of active Ethereum validators in Q2.
The anticipation surrounding EIP-1153 also drives the Ethereum network. O “transient storage opcode” improves the efficiency of smart contracts, reduces costs and amplifies Ethereum Virtual Machine design (EVM). Like this, the change has been valid especially among decentralized exchanges (DEX), where the dominance of the Ethereum network fell from 60% to 46% the last six months.
Caution for the short term
Fidelity data also shows that the digital currency has risen 62% year to date, recording gains of almost 60% (59%). Although, this is not a guarantee that this bullish channel will be maintained by ether despite all the data collected by recent research.
In a short term, Issues such as recurring high gas fees and lack of interest from leveraged buyers could impact more positive forecasts. Although, the tendency is for Ethereum to overcome these possible situations in the long term.
