Ethereum (ETH) has experienced a 20% jump this week, returning to prices last seen in early March. The market cap now stands at US$77.51 billion, with exchange-traded volume of US$1.94 billion in the past 24 hours. Transactions per day have also begun to increase, after sliding to less than half of the record high seen in December.
The average transaction fee has also risen slightly. The network value to estimated on-chain daily transactions (NVT) ratio remains elevated when compared to the previous twelve months.
A clear downtrend in NVT suggests a coin is undervalued for its utility and should be seen as a bullish indicator for price. Hash rate and difficulty increases began to slow slightly in April.
This is likely due to the dramatic decrease in mining profitability recently. ETH Proof of Work (PoW) mining will eventually become entirely unprofitable and impossible through the Casper Proof of Stake (PoS) transition.
In October 2017, the Metropolis hard fork protocol changes decreased the ETH block reward to 3 ETH from 5 ETH, with the difficulty lowered accordingly to maintain near the same mining profitability. Bitmain, a prominent ASIC developer, recently announced a batch of Ethash miners, priced at US$800 each and set to ship in mid-July. Read more from bravenewcoin.com…
thumbnail courtesy of bravenewcoin.com