To boost the rally, the Ethereum ecosystem is expanding its reach in the Web3 gaming industry and NFT sector, voyaging through uncharted territory. The second biggest blockchain is making strides with significant development in gaming protocols. Also, an increase in gas fees and added interest in Non-Fungible Tokens (NFTs) could play a major role.
Ethereum Voyaging Through Uncharted Waters
In 2023, ETH price surged nearly 80% from $1,191.00 to $2,147.47 during the time of the Shapella upgrade. But it slides down by 19.47% to its current value of $1,728.11. Despite this volatility, ETH’s comeback could be fueled by the flourishing gaming sector.
The Federal Open Market Committee (FOMC) made some announcements that negatively impacted Ether’s price. But a general deviation towards gaming has the potential to instill positive sentiments and help reclaim the previous high price values.
Also, gaming protocols like Axie Infinity (AXS), and The Sandbox (SAND) along with their project tokens, SAND, CHZ, AXIE, and ENJ are experiencing noticeable growth on the blockchain. It was reported in a tweet earlier.
Despite the market volatility, gaming tokens have seen a significant increase in the number of active addresses over the last 7 days.
Gaming on $ETH saw the largest week-over-week increase, with social project tokens such as $SAND, $ENJ, $CHZ, and $AXIE leading. pic.twitter.com/RIBkQlIBT6
— Artemis 🏹 (@Artemis__xyz) June 15, 2023
The increase in gaming activity resulted in a subsequent rise in unique active wallets for these decentralized applications (dApps). The eventual result of the surge was a positive impact on transactions and overall network volume. If the scenario continues for some time, the ETH value could rise.
At press time, Ether is trading at $1,728.11 with a gain of 0.88% in the last 24 hours and a drop of 1.20% in the last 7 days. Its value against Bitcoin suffered by 0.52% to 0.06525 BTC. Market cap corrected by 0.91% to $207 Billion, and trading volume fell by 48.43% to $3.63 Billion. Ranking at number 2, ETH shares a market dominance of 19.44%.
The surge in gaming activity caused a rise in gas usage on the Ethereum network. An increase in gas usage proves to be beneficial for the blockchain, as it showcases increased network activity along with demand for dApps. In turn, it secures the network’s utility and value proposition.
Blockchain NFT arm is also witnessing a surge in interest, as the number of NFT trades on the network skyrocketed. The driving force for this surge is the newly minted collections. Also, a noticeable decline was reported in the volume of blue-chip NFT collections like MAYC, Azuki, and BAYC.
Along with these NFT fanatics, the number of validators on the blockchain also increased significantly. Data suggest that the number swelled by 7.09% in the last 30 days. However, the revenue generation expected from these validators suffered a decline of 46.35% in a similar time-lapse.
The sentiments regarding ETH are broadly negative, as 52.02% of the traders took a short position. It is pointing towards the underlying bearish sentiment among the traders.
The current price coincides with EMA, but a weak RSI indicates price correction. If the price falls, before entering the demand zone, it might bounce off immediate support. For a northbound journey, the ETH price would have to first fight immediate resistance before entering the Supply zone.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/18/ethereum-wading-through-unexplored-trails-to-bounce-back/