Ethereum (ETH) closing in on Ripple’s XRP: time to re-flip it? Activity on ETH’s blockchain blows XRP ledger out of the water

Ethereum has had a great day today recording a massive 18% increase in price and by extension its market cap. Considering that XRP saw only a mild jump of 4.87%, Ethereum’s market cap is dangerously close to flipping XRP and taking back the second position in the market. The difference is currently in $600 million, XRP lies at 15.5 billion and ETH is at 14.9 billion. Bear in mind that the difference is on average around $3 billion ever since the flip happened back in November.

Ethereum is having a great day overall, as not only did the volume on exchanges soared, its on-chain activity, which is one of the fundamental proxies of intrinsic utility of a network and major price driver, also saw a spike in comparison to its usual numbers.

According to Messari data, Ethereum had $551 million of transaction on-chain volume (adjusted tx volume) in the last 24 hours, trailing only BTC in this regard. XRP on the other hand recorded $172 millions of value moved on its ledger.

Number of active accounts was 246k, which was enough for second place again behind only bitcoin. XRP had only a shred above 7k active accounts.

In the overall number of transactions, Ethereum overtook everyone except EOS by recording more than 600k transactions in a day. EOS was undisputed leader in this category with 4 million transactions. Surprisingly, Tron experienced a big dip in their tx numbers, from the usual 1.5 million to only 150k.

XRP had only 172k transactions in the last 24 hours.

Also, Kalichkin’s NVT value in the last 30 days dropped to 24 which is a big improvement in comparison to the previous period when it floated around 40 most of the time.

NVT Ratio (Network Value to Transactions Ratio) is similar to the PE Ratio used in equity markets.

When Ethereum’s NVT is high, it indicates that its network valuation is outstripping the value being transmitted on its payment network, this can happen when the network is in high growth and investors are valuing it as a high return investment, or alternatively when the price is in an unsustainable bubble.
NVT is calculated by dividing the Network Value (market cap) by the the daily USD volume transmitted through the blockchain. Kalichkin’s NVT
divides daily Network Value by 90 days Moving Average of Transaction Volume.

It seems Ethereum is getting its groove back and a further price increase of ether tokens is likely, but this time on healthy fundamentals and activity in the underlying network.

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Julian Joseph Lehmann
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