The price of Ethereum has been up by 16% since the 1st of July and has also outperformed Bitcoin over the last week.
This move could be partially driven by most of the crypto investors simply clinging on to their hopes that the network of ETH would be transitioning to a proof-of-stake consensus- which could then turn out to be a bullish catalyst. The next steps for the smart contract would involve the Merge, which was previously referred to as Eth 2.0.
The final trial on the test network of Goerli is expected in July before the mainnet of ETH gets the green light to work on its upgrade. Since the collapse of Terra’s ecosystem in the middle of May, the total value locked of Ether has increased, with the flight-to-quality in the DeFi industry hugely profiting from this cryptocurrency due to the potent security along with the battle-tested applications that the cryptocurrency possesses.
Ethereum’s Price Could Rally Upwards
Currently, Ethereum has a hold of around 57% of the market share of TVL, up from a sum of 51% on the 8th of April, as reported by data from DeFi Llama. Despite this humongous gain, the current $35 billion that has been kept in deposits on the smart contracts of the network seems quite petty compared to the $100 billion that was seen back in the December of 2021. Another reason behind the decrease in the use of the decentralized application on ETH is a drop in the transfer fees across the media, or gas costs- which currently stand at around $1.32. This figure has been the lowest since mid-December 2020 when the TVL of the network stood at around $13 billion.
It is expected that traders would be looking at the market data derivatives of Ethereum in order to truly understand how the market makers, as well as the whales, have been positioned. In that sense, around 25% of the delta skew is quite a telling sign whenever the professional traders end up overcharging for downside or upside protection.