On-chain data shows that on-chain activity metrics for Ethereum have recently increased, which could pave the way for further growth.

Ethereum transaction volume and the number of whale transfers have increased recently

According to data from an on-chain analytical company SaintlyEthereum saw an boost in two activity-related metrics. The metrics in question are trading volume and number of whale trades.

The first, “Transaction Volume,” tracks the total amount of cryptocurrency (in USD) that ETH network users move across the network in their transactions.

When the value of this indicator is high, it means that the ETH blockchain is currently processing the transfer of a vast number of coins. This trend suggests that investors are actively investing in asset trading.

On the other hand, a low rate means that interest in the cryptocurrency may currently be low as holders are only trading around a tiny amount of ETH.

Here is a chart showing the trend of transaction volume for Ethereum over the last few months:

As shown in the chart above, Ethereum transaction volume has recently seen a edged boost, which means that interest in the asset has increased as prices have increased.

This can be considered a constructive development for the cryptocurrency as increasing network activity is generally required for rallies to be sustainable.

In the past, some price movements started abruptly, but trading volume did not see a significant boost at the same time. Such moves generally soon died out.

The chart also includes data for another metric relevant here, “Number of Whaling Transactions.” This metric measures the total amount of ETH transfers worth over $100,000.

Trades of this scale are assumed to originate from whaling entities, so the number of whaling trades reflects the level of activity of gigantic money investors.

From the chart, we can see that this rate has also increased recently for Ethereum, which means that the recent boost in volume is not only a sign of interest from smaller investors, but also of huge hands.

Of course, based on indicators alone, it is impossible to determine whether investors are buying or selling, because from their point of view, all types of transactions look the same. Since ETH has seen a recent surge, this activity has likely been accumulative in nature so far.

The analytical company explains

During this bull run, expect any growth in Bitcoin to see profits redistributed to Ethereum and potentially push it towards an all-time high, while its network activity looks very robust.

ETH price

After seeing an boost of over 27% over the last seven days, Ethereum has surged above $3,150.

Featured image from Dall-E, Santiment.net, chart from TradingView.com