Ethereum has trended over the previous weeks due to its massive gains. Today, the leading altcoin by market capitalizations catches the attention of many because of its long-awaited London hard fork.
The upgrade will go live next week. Keep in mind that this happens as the crypto market gains value. Therefore, what will Ethereum have after the hard fork?
The Booming Altcoin Market
The recent price actions had altcoins, including Ethereum, prospering. Keep in mind that ETH’s price affects other alts’ values.
Recent research highlighted the massive growth of the crypto population, doubling in about four months to 221 million as of 2021 June. At the start of the year, ETH and BTC accounted for 80% of the overall market share.
However, it plunged last month to 61% as altcoins magnified their share to 38% from 20% during the same period.
Is ETH a Safe Bet?
The altcoin market’s next move will depend on the price actions that Ethereum will register in the weeks to come. MVRV on an asset’s price chart shows the average loss or profit of the entire coin holders depending on the value of each coin as of its last price move.
With that, ETH’s MVRV (one month) shows that the tokens were profitable. While writing this, the alt market has the highest metric since 15 May, standing at 11.54%.
On 28 July, the active addresses were 593,000, the highest since 28 July, after an impressive spike. The market saw a similar transaction uptick on 21 July, one week ago.
Regardless of the relatively high ETH’s MVRV, metrics show market forecasts linked to the awaited London hard fork.
A report showed that Ethereum was at a positive 9% MVRV (30d). That means that ETH holders’ average profits in one month are about 9%. Though that is risky to buyers, it is an opportunity for holders.
ETH has lost around 50% of its value from the May-end highs to July starting levels. That shows Ethereum’s return-yielding capacity for each extra unit of taken risk was high compared to what the asset had last month.
Meanwhile, other altcoins had the MVRV (30day) varying from +4 % to +9%, as Ethereum’s was +9%. That means the other altcoins were in a more neutral space and less risky to purchase. The report highlighted that too.
You can use the above information when planning to buy Ethereum at the moment.