Ethereum (ETH) has become a beacon in the sea of blockchains, boasting a staggering 92% surge in dApp (decentralized application) volume over the past week. This news, however, comes with a layer of complexity, revealing a landscape of both opportunity and potential setbacks for the leading blockchain.

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Cheap Gas Fuels The Fire

Analysts attribute the dApp volume explosion to the Dencun upgrade in March, which significantly reduced gas fees – the cost associated with processing transactions on the Ethereum network.

Lower fees have historically enticed users, and this recent development seems to be no different. The surge in activity suggests a revitalized Ethereum, potentially attracting new projects and fostering a more vibrant dApp ecosystem.

NFT Mania Drives The Numbers

While the overall dApp volume (see chart below) paints a rosy picture, a closer look reveals a more nuanced story. The surge appears to be driven primarily by a surge in NFT (Non-Fungible Token) trading and staking activity.

Applications like Blur and Uniswap’s NFT aggregator saw significant hikes, highlighting the booming NFT market on Ethereum. This trend indicates a thriving niche within the Ethereum dApp landscape, but raises questions about the platform’s diversification beyond NFTs.

A Look At User Engagement

A curious wrinkle emerges when examining user engagement metrics. Despite the impressive volume increase, the number of unique active wallets (UAW) on the Ethereum network has actually decreased.

This disconnect suggests that the current activity might be driven by a smaller, more active user base. While high volume is certainly a positive indicator, it’s crucial to see broader user participation to ensure the sustainability of the dApp ecosystem.

A Glimmer Of Hope?

One positive long-term indicator for Ethereum is the trend of decreasing exchange holdings, as reported by Glassnode. This suggests ETH holders are moving their assets off exchanges, potentially reducing sell pressure and contributing to price stability.

If this trend continues, ETH could potentially target reaching $4,000 this quarter or even surpass its all-time high. However, this price prediction remains speculative and depends on various market forces.

Ethereum At A Crossroads

Ethereum finds itself at a crossroads. The Dencun upgrade has demonstrably revitalized dApp activity, particularly in the NFT space. However, the uneven dApp performance and declining UAW raise concerns about the long-term viability of this growth. Network growth, measured by the number of new addresses joining the network, is also slowing down, according to Santiment, potentially hindering wider adoption.

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The short-term price outlook for ETH remains uncertain. While the long-term indicators, like decreasing exchange holdings, suggest potential for price appreciation, the network’s growth slowdown might lead to a short-term price dip.

Looking Forward

The coming months will be crucial for Ethereum. The platform needs to capitalize on the renewed interest in dApps by attracting a broader user base and fostering a more diverse dApp ecosystem beyond NFTs. Addressing scalability issues and ensuring user-friendly interfaces will also be key to sustaining growth.

If Ethereum can navigate these challenges, it has the potential to solidify its position as the premier platform for decentralized applications. However, if it fails to adapt, other blockchains waiting in the wings might capitalize on its shortcomings.

Featured image from Pexels, chart from TradingView

Crypto analyst Quinten François has provided an ultra-bullish narrative for the Bitcoin future trajectory. The analyst suggested that things are about to get interesting for the flagship crypto, predicting it could rise to as high as $4.5 million. 

The “Fireworks” Are Just About To Begin For Bitcoin

While highlighting the significance of Bitcoin’s fourth halving, Quinten claimed that the “fireworks” were just about to begin for Bitcoin. The crypto analyst remarked that BTC was currently at the bottom of the range of a growth pattern, which it could enjoy if this fourth halving were to follow the same growth rate as the previous market cycles. 

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If that were to happen, Quinten claims that Bitcoin could be worth between $140,000 and $4.5 million going forward. He noted that this potential move for BTC is starting at the range bottom at $63,000, so he remarked that the fireworks are just about to start for the flagship crypto. 

From the chart Quinten shared, Bitcoin’s impressive growth to $4.5 million isn’t expected to happen in this bull run. He predicts that Bitcoin could peak at around $1 million if it were to mirror Bitcoin’s trajectory after the first halving. Meanwhile, Bitcoin could eventually rise to $4.5 million in 2028 if it continues to mirror the price action following the first halving. 

Additionally, BTC’S fourth halving mirroring the second or third halving will bring lower price moves for the flagship crypto. Quinten predicts that Bitcoin will rise to as high as $400,000 or $280,000 if it follows the second or third halving, respectively. Meanwhile, based on the second and third halving trajectory, Bitcoin could rise to as high as $1 million or $800,000 by 2028. 

Time For BTC To Resume Its Upward Trend

Based on recent analyses by different crypto analysts, Bitcoin could resume its upward trend soon enough. Crypto analyst Ali Martinez mentioned that retail investors are returning to the Bitcoin ecosystem, with new Bitcoin addresses hitting a four-month high of 432,026. This could put the flagship crypto in price discovery and lead to a rally as these investors accumulate Bitcoin.

Crypto analyst Mikybull Crypto also recently predicted that BTC is set to rise higher. He claimed that the flagship crypto had completed its inverse head-and-shoulder pattern on the daily and noted that Bitcoin’s Moving Average Convergence/Divergence (MACD) indicator suggests an imminent bullish cross, which indicates strength for the flagship crypto. 

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Meanwhile, Mikybull Crypto revealed that Bitcoin’s CME gap has been filled. This is significant as crypto expert Michael van de Poppe predicted that Bitcoin could witness a bounce from its current price levels once the CME gap has been closed. 

At the time of writing, Bitcoin is trading at around $60,600, down over 3% in the last 24 hours according to data from CoinMarketCap. 

Featured image created with Dall.E, chart from Tradingview.com