The Ethereum network has been experiencing some strong growth in fundamentals in recent times. Among this is the addition of 50,000 validators to the network since the start of March.
Ethereum appears to be doing well on a number of technical counts, judging by recent blockchain data. The number of network validators on Ethereum’s beacon chain is now over 350,000.
The beacon chain was launched in Dec 2020 to much fanfare. It sparked the beginning of a new era for the market’s second-biggest asset and has grown continuously since. At the start of 2021, the number of validators was under 50,000 — and its rise since shows confidence in the network.
The amount of ETH on centralized exchanges has also been dropping considerably since the middle of 2020. This is usually a sign of bullishness for an asset, because investors would otherwise leave the asset on an exchange for selling or trading. Taking it off of centralized platforms generally means they are holding or using the asset on self-custody wallets for DeFi.
Data shows that, the amount of ETH on centralized exchanges is under 24.5 million. Compare that to Aug 2020, when it was nearly 34 million.
Alongside this, there is the growth in the total value of ETH staked on the network. This has been occurring even as the ETH price has been fluctuating. The total ETH staked is now over 10.5 million.
Ethereum’s future looks increasingly bright
Those technical achievements are very good for Ethereum and the ETH token, as they demonstrate market confidence. Ethereum has also achieved some technical milestones this year, such as integrating the merge with the Kiln testnet. A mainnet integration is expected by the end of the year.
Ancillary developments on Ethereum are also progressing well. The Layer 2 network Optimism has reached a new all-time high of $525 million. Recent weeks have been particularly strong for Optimism.
With such developments and successes, it is difficult not to be bullish about Ethereum’s future. The network is also backed by strong growth in DeFi and non-fungible tokens [NFTs), which will undoubtedly be a big factor in its further adoption.
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