Ethereum To Overtake Bitcoin As ETH Enters 40% Rally

Ethereum has surpassed $3,400, a significant psychological barrier, and the altcoin has one last resistance barrier at the $4,078 level before it rallies to a new all-time high.

Ethereum’s on-chain activity signals that ETH is poised for the second leg of bull run

The spike in non-fungible token activity has led to a rise in the number of active addresses and the transaction volume on the Ethereum network.

NFT sales volume on the largest peer-to-peer marketplace, OpenSea, has surged to $1.9 billion since the beginning of August. Most NFTs are valued in Ethereum, and the spike has triggered an increase in transaction fees on the Ethereum network.

Despite the rise in fees, the implementation of EIP-1559 has led to the burn of 150,000 Ether so far, of which 50,000 was burned in the past five days.

Lucas Outumuro, head of research at blockchain intelligence firm IntoTheBlock, noted that Ethereum’s daily issuance has fallen below Bitcoin’s for the first time.

The current Ethereum on-chain activity is at a similar level seen during the onset of the first leg of the bull run in April 2021.

Since the latest Ethereum Improvement Proposal (EIP-1559) went live in the London Hard Fork, Ethereum’s daily issuance has turned negative on several occasions. Traders are now anticipating the “merge,” which is the change from a Proof-of-work to a Proof-of-stake consensus mechanism.