Ethereum (ETH) Development Activity Ticks Up in Past Month
The interest in using the Ethereum network as a basis for decentralized finance has re-sparked interest.
The inflow of DeFi projects based on Ethereum (ETH) has coincided with a recent uptick in development activity. Ethereum core developers keep adding new EIP to the protocol, and the recent uptick follows a period of low activity around the date of DevCon.
The utility of Ethereum has shifted in 2019, with the ascent of the DeFi trend. The utility of ETH is now seen as providing collateral, as well as a platform to move coins and tokens with greater ease.
Development activity also has a correlation to price action, previous analysis reveals. ETH has performed relatively well in the past months, stabilizing above $180. ETH traded at $187.16, outperforming the trend of Bitcoin (BTC). ETH rising while BTC is down is also a rarity in 2019, when BTC dominated most markets.
One of the reasons for the growth is the constant inflow of ETH as collateral for Maker DAO and the minting of the DAI stablecoin. The ETH staked is now above 1.79 million coins, growing by 600,000 in the past couple of weeks.
Additionally, ETH gets a boost from the high-level activity of Tether (USDT) ERC-20 tokens. The recent price rally, which took ETH above $190 recently, has also disregarded the fears about ETH 2.0 and the potential to disrupt current projects.
For now, ETH also rises despite concerns about network congestion, as FOMO games have abated and most smart contracts are operating without delays.
The Ethereum hashrate remains above 185,000 GH/s, as for now fears of a fast shift to proof-of-stake have been abandoned. At this point, staking is around 18 months away, as the mining ice age was delayed once again.
The ETH market performance for now has not triggered an altcoin season, and may be a separate phenomenon, increasing the appeal of the asset despite long-term pessimism.