Ethereum Experiences Surge in New Contracts, Poised for Price Growth
Ethereum (ETH) attempted to surpass the $5,000 mark on August 24, reaching an all-time high (ATH) of $4,956 but subsequently pulled back. Increased contract activity is anticipated to drive ETH toward this milestone.
Ethereum New Contract Activity
- New contracts surged significantly as ETH price crossed $4,500 in 2023.
- CryptoQuant analysis indicates a potential rebound in contract activity for 2024-2025.
- Historical patterns show mixed correlations between contract creation and price movements.
- During the 2016-17 cycle, muted contract activity preceded an uptrend in ETH price.
- The 2018 bull run saw rising contracts without corresponding price gains.
- The 2020-21 market experienced significant contract creation aligned with DeFi and NFT growth.
- In 2022, both contracts and ETH price declined due to reduced developer interest and user demand.
Current Outlook
- Recent contract surges indicate renewed network activity driven by DeFi, NFTs, and institutional adoption.
- Sustained trends could lead to a new ETH bull run.
- Long-term growth in contracts reflects increasing real-world use-cases supporting ETH's value.
- However, short-lived price corrections may occur during hype-driven bursts in contract creation.
- Fundstrat’s Tom Lee predicts ETH could reach $5,500 soon.
- Standard Chartered's Geoffrey Kendrick forecasts a price of $7,500 by year-end.
- As of now, ETH trades at $4,582, down 0.2% in the last 24 hours.
