This Saturday, July 25, Ethereum saw that its price exceeded US$300. On July 27, the cryptocurrency increased another 4%, reaching the mark of US$324
According to analysis company Glassnode, this increase resulted in profits for 70% of Ethereum addresses.
The company shared a tweet Monday stating that 71.72% of ETH’s tracked portfolios are now making a profit.
This breaks the previous high, 68.17%, seen on July 26.
📈 #Ethereum $ETH Percent Addresses in Profit (1d MA) just reached a 2-year high of 71.727%— glassnode alerts (@glassnodealerts) July 27, 2020
Previous 2-year high of 71.616% was observed earlier today
View metric:https://t.co/caVzUVoOt2 pic.twitter.com/4HqpR1HXk5
Many speculate about the reason for the increase.
Some believe it may be related to the Visa announcement, which involves creating apps on Ethereum.
Also, another reason may be a recent decision that declared Bitcoin as “money” in the United States.
DeFi may be the cause
Industry watchers say DeFi contributes to Ethereum’s rise. For some, it’s only a matter of time before the network, on which almost all DeFi projects are built, fundamentally reaches its true value.
This even caused some popular Bitcoin advocates to accumulate ETH. Raoul Pal, co-founder of Real Vision, spoke positively about Ethereum recently:
“I am becoming increasingly optimistic about Ethereum. ETH is the silver for Bitcoin gold. It has more uses in the industry and less storage of value (…) ETH is about adoption fees and use. Basically it all comes down to something called DeFi. “
Pal also stated that the charts point to crypto to outperform BTC “at some point”.