This week has been the best ever for Ethereum (ETH). The coin has rallied past $3,500, which marks its highest value this year, with its market dominance increasing by 17%. Its latest market cap ($398 billion) means the currency is now more valuable than MasterCard, PayPal, and Bank of America.
Supporting the bull case for Ethereum is the strengthening fundamentals. For example, Ethereum deposits are lower than ETH withdrawn from exchanges, while ETH deposits to DeFi have doubled in three months.
Maintaining bullish rally
Despite the four times growth in ETH since the beginning of the year, current market activity suggests that the bull run will not be slowing down anytime soon. The supply of Ethereum on various exchanges has been slowing down faster than exchange inflows. This trend shows increased growth and less risk in investing in crypto.
The growth trend of Ethereum is also an exciting aspect that investors should be looking out for. The non-exchange ETH whale addresses have doubled while the exchange ETFs have dropped by half. This is an opposite trend to the exchange and non-exchange whale addresses.
Increase in Ethereum DeFi Deposits
As ETH is increasingly flowing out of exchanges, there is an increase in the number of ETH deposits flowing into DeFi protocols. The total value of ETH deposited in DeFi protocols has increased two times in the past three months.
In addition, deposits made to the ETH smart contracts have also increased to a record high. The value of Ethereum coins added to the deposit contracts on the Ethereum mainnet has also grown to reach around $13 billion. The total value on the Eth 2.0 deposit contracts has reached ATH 4.2 million ETH.
There has also been evidence that institutional adoption of ETH has also increased. The ETH premium recorded on Coinbase has also increased significantly since the beginning of the year. This adoption will most likely push the value of ETH higher and even result in overall success.
However, it has not been all roses for Ethereum, given the increase in gas fees on the ETH platform. Nevertheless, gas fees have dropped significantly over the last few years, attracting more investors to the platform.
It has also seen increased network activity on the Ethereum mainnet. Ethereum is also looking to complete the upgrade to Eth 2.0 by the end of next year.
The Berlin fork was the most recent milestone on the Eth 2.0 roadmap, taking place in mid April. This upgrade will increase on-chain activity on Ethereum and could push ETH prices even higher.