The perseverance of the bear market has adversely affected the crypto community immensely. Notwithstanding, some retail and institutional investors have relentlessly anticipated the bottoming of the markets to find a strong point of accumulation. A recent Bloomberg report suggests that ETH has fully bottomed, citing a favourable macroeconomic backdrop.
The ETH network is outperforming BTC, per metrics
A Bloomberg Intelligence report on Crypto Outlook released on August 2 revealed that the king altcoin had reached its lowest levels in the market cycle and is primed for a significant takeoff in the near future.
The report noted that ETH has likely bottomed out due to “more accommodating” macroeconomic conditions and favourable metrics on the Ethereum network activity, which has seen a massive improvement in the past months, notwithstanding the unpropitious realities of the markets.
Noting some key metrics, the Bloomberg report revealed that network activity on the Ethereum network has recovered to the extent of outperforming Bitcoin, taking into consideration several pointers, including several non-zero balance addresses and active addresses.
Metrics reveal that ETH non-zero balances are at an all-time high after surging by 42% in the past year, with a 3-year 100% percentile approximately double the Bitcoin network rate.
Additionally, BTC active addresses dropped by 30% in the past three years – an abysmal performance compared to the 113% increase the ETH network saw in the same period. Daily transactions on the ETH network (on a 7-day average) have also surged by 62% in the past three years.
The ETH network has seen a 3105% growth in NFT adoption in the past three years
Furthermore, the much anticipated Ethereum Merge slated for September this year was highlighted as a significant driving force in Ethereum’s ambition to become “a global institutional-grade asset.”
The report also mentioned the Ethereum network’s diversity, especially about pragmatic use cases of Blockchain tech in “economic and social activity” as seen in DeFi and NFTs, noting that these are catalysts to Ethereum’s success.
A chart revealing ETH smart contracts activity shows a 3105% growth in NFT utilisation on the network in the past three years, which was due to the growing interest in NFT within the mainstream media and amongst celebrities.
The favourable conditions of the Ethereum network combined with the transition to the Proof-of-Stake consensus mechanism The Merge will bring are likely to drive surging demand into the markets, which could set the asset for a quick reversal.
The value of ETH has increased by 12% in the past week despite the lingering Winter. The asset appears to be performing better than expected, considering current market realities, as it trades at $1,915 at the time of writing, awaiting the right time for a rally.