Ethereum Sees Contract Boom In 2025, Setting Stage For $5,000 Rally

Although Ethereum (ETH) failed to break the $5,000 mark on August 24 – pulling back from a new all-time high (ATH) of $4,956 – the second-largest cryptocurrency by market cap may soon cross that milestone, driven by booming new contract ￰0￱ New Contract Activity Booming – Will Price Follow? According to a CryptoQuant Quicktake post by contributor PelinayPA, a sharp rebound in Ethereum contracts could be seen in 2024 and ￰1￱ year specifically, new contracts surged dramatically as ETH price climbed beyond $4,500. The CryptoQuant contributor highlighted that during the 2016-17 market cycle, new contract activity remained relatively ￰2￱ the subdued activity, ETH price entered a strong ￰3￱ Reading: Ethereum Price Lags Despite All-Time High In Daily Transactions – What’s Next For ETH?

On the contrary, following the 2018 bull run, ETH entered a price downtrend despite a rise in new contracts. ETH’s price reaction to a growth in new contracts showed that usage growth could not offset the bursting of the speculative bubble surrounding digital assets. Meanwhile, during the 2020-21 bull market, Ethereum contract creation spiked significantly, in-line with the decentralized finance (DeFi) and non-fungible tokens (NFT) ￰4￱ the time, increased network activity served as a key catalyst in aiding ETH’s ￰5￱ – during the 2022 bear market – both contract number and ETH price ￰6￱ digital asset’s price and network activity was also adversely impacted due to dwindling developer interest and user demand during the market ￰7￱ aforementioned examples confirm that over the long-term, growth in contract creation shows rising confidence and adoption within Ethereum’s ￰8￱ factors play out positively for ETH’s ￰9￱ said, sudden surge in contract creation have not always directly resulted into price ￰10￱ was evident from the price corrections observed during 2018 and 2021 ￰11￱ Does The Current Outlook Indicate?

In her analysis, PelinayPA remarked that the latest surge in new Ethereum contracts signals renewed network activity, primarily driven by DeFi, NFT, and institutional ￰12￱ the trend sustains, it could fuel the next ETH bull ￰13￱ Reading: Ethereum Average Daily Outflow Hits 40,000 ETH Amid Rising Buying Pressure – Details As far as long-term effects are concerned, the analyst said that consistent growth in new contracts highlights Ethereum’s rapidly expanding real-world ￰14￱ gives immense support to ETH’s price. However, hype-driven contract spikes can lead to short-lived price ￰15￱ predictions point toward further room for growth for ￰16￱ instance, Fundstrat co-founder Tom Lee forecasted that ETH may climb to $5,500 “in the next couple of weeks.” In the same vein, Standard Chartered’s digital assets research chief, Geoffrey Kendrick, noted that ETH could rise to $7,500 by the end of the ￰17￱ press time, ETH trades at $4,582, down 0.2% in the past 24 ￰18￱ image from Unsplash, charts from CryptoQuant and ￰19￱