- Ethereum outperformed its competitors in terms of network GDP.
- The price movement of Ethereum showed a positive trend as it geared up for a new upgrade.
Ethereum [ETH] witnessed large amounts of volatility in terms of price movement over the last few months.
However, the fundamentals around the network remained sound, suggesting a positive future for ETH ahead.
As Layer 1 networks mature, the use cases being built “on top” of them continue to evolve.
At the same time, onchain data providers such as @tokenterminal continue to give the market an increasingly clear view of how these systems are being used today — and how they may be used… pic.twitter.com/H206k6SEL4
— Michael Nadeau (@JustDeauIt) January 29, 2024
Outperforming its competition
According to Token Terminal, Ethereum’s “GDP” holds significant promise.
The evaluation method employed involves comparing Ethereum’s valuation to other layer 1 networks through a “GDP” analysis.
This method measures and predicts the economic potential, or GDP, of the network by treating it like a country.
Notably, Ethereum’s “GDP” over the past 365 days, as per Token Terminal’s data, stood at $2.7 billion.
At press time, Ethereum led its competitors in both “GDP” and Total Value Locked ($28 billion), showcasing dominance that is anticipated to grow further as the network scales through layer 2 solutions.
The above news is positive for the trajectory of the network, as it shows promise for further growth.
However, only time will tell whether Ethereum can capitalize on its GDP dominance, and whether the price of ETH will experience growth as a result.
State of ETH
At press time, ETH was trading at $2,315.37, and its price had grown by 2.2% in the last 24 hours.
The price movement of ETH showcased by ETH over the last three months showed multiple higher highs and higher lows, establishing a bullish trend.
Read Ethereum’s [ETH] Price Prediction 2024-25
The total number of addresses holding ETH had also grown during this period, along with a spike in network growth. A surging network growth suggests that new addresses were showing interest in ETH.
The combination of these factors, coupled with the upcoming Dencun upgrade, suggested that the bulls may stand to gain from ETH in the short term.