Ethereum Network Activity Surges, ETH Rallies Strongly, Can It Break $3,000?

Ethereum Network Activity Surges, ETH Rallies Strongly, Can It Break $3,000?Ethereum network activity continues to increase, and ETH has not only demonstrated strong price action, but has also surpassed Bitcoin in key market data, showcasing robust growth momentum. With rising open interest and funding rates, the surging meme wealth effect on Ethereum, and clear signs of network growth, market demand for Ethereum is rapidly escalating

Ethereum Network Activity Surges, ETH Rallies Strongly, Can It Break $3,000?

Ethereum network activity continues to increase, and ETH has not only demonstrated strong price action, but has also surpassed Bitcoin in key market data, showcasing robust growth momentum. With rising open interest and funding rates, the surging meme wealth effect on Ethereum, and clear signs of network growth, market demand for Ethereum is rapidly escalating. In the face of these positive developments, many investors are starting to anticipate whether ETH can further climb and break through the $3,000 mark, becoming the protagonist of the next bull run.

ETH/BTC Ratio Strengthens, Reflecting Significant Growth in ETH Demand

According to Binance data, ETH rose by 18.7% between September 17th and September 24th, outperforming Bitcoin's growth during the same period. At the same time, Bitcoin's price was $63,000, with a 1.8% increase. The overall cryptocurrency market capitalization rose by 2% to $2.3 trillion.

Over the past seven days, ETH has surged by 17.5%, significantly outperforming Bitcoin's 9.8% growth over the same period. Previously, the ETH/BTC trading pair had dipped to a three-year low of 0.0384, but rebounded by approximately 7.5% over the past week and reached a three-week high of 0.0424 on September 23rd. This reversal in the ETH/BTC ratio reflects a significant increase in market demand for ETH.

Ethereum ETF Inflows Turn Positive, but Still Lag Behind Bitcoin

According to Farside Investors data, inflows into US spot Ethereum ETFs turned positive last week, registering inflows of $5.2 million and $2.9 million on September 19th and September 20th, respectively. However, data from CoinShares shows that inflows into Ethereum investment products still lag behind Bitcoin, with ETH experiencing net outflows for the fifth consecutive week, totaling $29 million between September 16th and September 20th. This phenomenon is primarily attributed to continued outflows from Grayscale trusts and the inability of newly issued ETFs to attract sufficient funds.

Bitcoin Market Dominance Declines, Reflecting Growing Bullish Sentiment Towards ETH

ETH's strong performance is also reflected in the decline of Bitcoin's market dominance. Data shows that Bitcoin's market dominance fell from 58.7% on September 19th to 57.4% on September 24th, indicating that Bitcoin's performance relative to altcoins like ETH has been weakening. As Bitcoin's dominance gradually declines, the market expects the ETH/BTC ratio to rise further, reflecting growing bullish sentiment towards ETH and potentially driving more capital towards Ethereum-related investment products.

Leverage Demand and Market Expectations, ETH Funding Rates and Open Interest Both Hit 20-Month Highs

According to Coinglass data, since September 16th, the 8-hour weighted funding rate for Ethereum open interest has turned positive, currently at 0.0072%. At the same time, open interest in Ethereum futures has reached a 20-month high, although leverage demand remains relatively balanced. This price action is complemented by the increase in the number of open interest contracts for Ethereum futures, which has also reached its highest level in 20 months. The rising funding rate and open interest for Ethereum reflect a significant increase in market demand for leveraged long positions, signaling a bullish market outlook.

Meme Wealth Effect Strengthens on Ethereum, Leading a New Wave of Upward Momentum

Recently, the launch of uppercase $NEIRO and lowercase $Neiro on Binance seems to have ignited a new wave of upward momentum for Ethereum, ending months of stagnation in Ethereum's gas fees. At the same time, this wave has also sparked discussions and enthusiastic participation in other meme projects on the Ethereum chain.

Lowercase $Neiro has surpassed $0.0013, surging over 60% in the past 24 hours. Its current total market cap has exceeded $550 million, setting a new all-time high.

The contract for the TERMINUS project was first created 39 days ago, and its token ID originates from the name of the "first human city on Mars" mentioned by Musk for future SpaceX construction. Community members point out that Musk had already referenced this concept from the Foundation series by renowned science fiction writer Isaac Asimov in February 2020, viewing TERMINUS as a "new human highland."

On September 21st, DogeDesigner (the UX/UI designer for Dogecoin, retweeted by Musk) tweeted: "The first city on Mars might get named 'Terminus' - Elon Musk," which subsequently led to a surge in the price of the meme coin TERMINUS by over 10,000%. At press time, TERMINUS is currently quoted at $0.44, with a circulating market cap exceeding $44 million and 24-hour trading volume exceeding $10 million. Over the past four days, the token has soared by as much as 500 times.

According to Lookonchain's monitoring, a trader purchased 3.46 million TERMINUS on September 8th at $135, and now its market value has exceeded $1.4 million, generating an astounding return of 10,000 times.

Ethereum Network Activity Indicates Increased Demand for ETH

Analyzing Ethereum's network activity and its scaling solutions is a key factor in maintaining the $2,600 support level. As the core of the Ethereum ecosystem, increased transaction volume in decentralized applications (DApps) typically reflects increased demand for ETH.

According to DappRadar data, while the number of unique active wallets for top Ethereum DApps has slightly decreased by 1.42% in the past 24 hours, transaction volume has surged by 21.92%. This shows that despite a decrease in the number of users, the intensity of activity on DApps remains significantly elevated.

Moreover, due to the growth of DeFi platforms such as Uniswap, Balancer, ParaSwap, and Aave, the total volume of DApp transactions on the Ethereum network has grown by 6.5% over the same period. Data from DefiLlama further indicates that Ethereum's total value locked (TVL) has also increased from $44.1 billion on September 18th to $49.35 billion on September 24th, reflecting greater user interaction with the blockchain.

The continued growth of the Ethereum network, rising transaction activity, and increased DApp utilization are all key drivers in keeping ETH prices firmly above $2,600.

Summary

ETH's strong performance stems from the combined effect of several positive factors, including the strengthening of the ETH/BTC ratio, positive inflows into Ethereum ETFs, declining Bitcoin market dominance, increased leverage demand and market expectations, the growing meme wealth effect on Ethereum, and the improvement in Ethereum network activity. These factors have collectively contributed to a rapid rise in demand for ETH, providing a solid foundation for further price gains.

It's important to note that although ETH's current performance is quite strong, some risks still exist in the market, such as regulatory policies, changes in market sentiment, and the emergence of competitors. Investors need to carefully consider these risk factors and implement risk management measures when investing in ETH.