Ethereum’s NVT Ratio Shows that ETH’s Price Growth is Backed by High Transaction Volumes
According to the team at Glassnode, Ethereum’s current price growth is organic and backed by high transaction volumes. Furthermore, Ethereum’s NVT ratio is low and indicative that the transaction volumes are growing at a faster rate than the network’s market cap.
As $ETH price reaches over $3,000 setting a new ATH, the NVT Ratio is driven back down towards this cycles lows. Low NVT Ratios indicate transaction volumes are high and growing faster than the network market cap. Today’s market strength is supported by volume settled on-chain.
Ethereum Exceeds Walt Disney, Bank of America, Home Depot, in Market Cap
At the time of writing, Ethereum is trading at $3,173 with a market capitalization of $367.5 Billion. Ethereum’s current price action above $3k means that it has exceeded the following ‘traditional’ companies in terms of market capitalization.
With its new all-time high of $3,204, the second most valuable digital asset of Ethereum has literally entered uncharted territory. Therefore, Ethereum needs to hold several crucial short-term support areas above $2,700 if the current bullish momentum is to be maintained.
The crucial short-term support areas for Ethereum include: