Ethereum Eyes Solo Rally Fueled by MVRV, Network Activity, Leaving Altcoins Behind

Ethereum's MVRV uptick signals a potential solo rally buoyed by robust network activity and upcoming ETFs, even as altcoins may not keep pace.
ETH Ethereum VoiceOfCrypto

ETH Ethereum VoiceOfCrypto

Key Insights

  • CryptoQuant's CEO, Ki Young Ju, has just highlighted Ethereum's MVRV ratio rally, which forecasts an incoming price increase.

  • While Ethereum's MVRV is rising, it's still lower than Bitcoin's, indicating a lower risk of overvaluation.

  • The analyst suggests altcoins might not follow Ethereum's rally, and we might see an Ethereum-specific bull run.

  • Increased transaction volume and active addresses on the Ethereum network also point to genuine user interest in the cryptocurrency.

  • The arrival of these ETFs could further fuel Ethereum's growth by July.

Ethereum might be on the verge of a massive price surge—and no, this isn't just related to the upcoming spot Ethereum ETF launches.

It turns out that a major Ethereum metric is showing signs of a spike in activity, indicating that the cryptocurrency may be "heating up," according to Ki Young Ju, the CEO of CryptoQuant.

However, there might be a catch.

Let's review everything we know about Ethereum and why the rest of the altcoin market might have to wait a little longer to follow it up or down.

Ethereum Is “Heating Up”

According to recent insights from CryptoQuant’s Ki Young Ju, the Ethereum market’s MVRV shows signs of heating up.

However, amid this "heat," there are indications that the cryptocurrency is not yet overvalued compared to Bitcoin.

To understand what this means, we first have to go over what the MVRV ratio is.

The MVRV ratio does much the same thing as the relative strength index, indicating when an asset is overvalued or undervalued.

However, the major difference is that the MVRV ratio indicates whether a cryptocurrency is trading above or below what the market stipulates as its "fair price."

According to Santiment, MVRV stands for "Market Value To Realised Value" and compares what the average investor is willing to pay for an asset, compared to its realized value (or the price at which it was actually bought)

In detail, Ki Young Ju says that over the last month, the cryptocurrency's MVRV has risen by around 29.9% to a peak of 91.43%.

Comparatively, Bitcoin’s MVRV has declined by around 10.8%, leaving the cryptocurrency at an MVRV of 127.41%, according to this chart from Santiment below:

<div class="paragraphs"><p>A decline in Bitcoin versus a rise In ETH</p></div>

A decline in Bitcoin versus a rise In ETH

This means that Ethereum's market value is rising faster than its realized value, meaning that a surge might be incoming, followed by a possible sell-off.

The analyst also notes the possibility of this being an "ETH-only season," indicating that the rest of the altcoins might not follow the king upwards.

There’s More With Transaction Volume and Active Addresses

Coupled with the ongoing MVRV trend, Ki Young Ju points out that we are also seeing a similar increase in transaction volume and active addresses, indicating that Ethereum has genuine user engagement and investor interest.

<div class="paragraphs"><p>Rising active addresses and transaction volume</p></div>

Rising active addresses and transaction volume

This trend with Etheruem’s daily active addresses and transaction volume might be directly tied to the upcoming spot Ethereum ETFs.

According to the SEC chair, Gary Gensler, these exchange-traded products are expected to hit Wall Street between now and "the end of summer."

Bloomberg ETF analyst Eric Balchunas also believes that we might be seeing the Ethereum ETFs begin trading sometime around 2 July.

This is without mentioning the SEC's recent shutting down of the ongoing investigation against Ethereum 2.0 this week.

Regardless of how things play out, however, Ethereum is headed for better days ahead, and it might help to be ready when the heat that Ki Young Ju forecasts finally comes.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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