Ethereum and why it has a solid case for a bullish 2022

ambcrypto.com:

2021 was undoubtedly a revolutionary one for cryptocurrencies, especially due to the mainstream emergence of decentralized finance (DeFi) and non-fungible tokens (NFT). However, good times don’t last forever. And, many are fearful that this year might not be as lucrative for investors now that signs of a slowdown are evident.

Ethereum‘s utility could be its saving grace in this scenario, according to IntoTheBlock analyst Lucas Outumuro. In his recent report, he highlighted that the smart contract platform’s transaction count has been increasingly losing its correlation with ETH’s price action. This means that the network and its native token are now being utilized regardless of where the price is headed.

This was not the case during the crypto-crash of 2018, when the transaction count dropped sharply in tandem with the price.

Source: IntoTheBlock

The sustained flow of transactions could be attributed to 2020’s DeFi summer, along with last year’s rise in popularity of web3 and NFT platforms. In fact, many of the same are built on Ethereum’s Layer 1.

Source: YCharts

A similar trend can be noted in the daily active addresses count on the Ethereum network. It fell sharply in early 2018 post the price crash. However, it has remained on the steady side, despite May 2021’s bloodbath.

Furthermore, Ethereum’s non-zero addresses recently hit an all-time high too. This could indicate accumulation from hopeful investors.