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- Ethereum Name Services hit a two-year-high.
- ENS has surged by 45.49% over the past 24 hours.
Over the past 24 hours, Ethereum Name Service [ENS] has surged to hit a two-year-high. The altcoin has surged from a low of $21.51 to a high of $37.
In fact, at the time of writing, ENS was trading at $35.64. This marked a 45.49% increase over the past 24 hours. Also, the altcoin has gained on weekly and monthly charts, hiking by 85.91% and 99.69% respectively.
The current market conditions raise questions about whether ENS is set for further gains, or whether the rally is mere speculation.
Is ENS ready to rally?
According to AMBCrypto’s analysis, Ethereum Name Service was experiencing a sustained upward momentum amidst a strong bullish sentiment.
Source: Santiment
For example, ENS’s NVT Ratio (by circulation) has declined over the past week to hit a low of 58 from a weekly high of 188. This decline suggests that the altcoin’s on-chain activity is growing faster than the market cap, signaling higher utility and adoption.
Source: IntoTheBlock
This is further supported by a surge in daily active addresses. According to IntoTheBlock, ENS’s daily active addresses have surged to hit a 5-month high of 1.69k.
A spike in active addresses and a declining NVT ratio suggest that the price rally is supported by strong market fundamentals and not from mere speculation.
Source: IntoTheBlock
Additionally, the altcoin’s large transactions have surged to hit a yearly high of 695. Such a surge implies that whales are also actively engaged. This further supports our earlier observation of growing on-chain activity.
Source: IntoTheBlock
Whale participation above is further evidenced by a surge in large holders’ inflow. When large holders’ inflow rises, it shows that whales are purchasing an asset. Whale accumulation reflects market confidence as they anticipate further gains on price charts.
Source: Coinglass
Finally, the altcoin’s open interest has surged to hit a 5-month high of $154 million. This uptick implies that investors are continually opening new positions, signaling their confidence in the altcoin’s future prospects.
What Next?
Therefore, the uptick in these metrics, suggests that the ENS surge is not from mere speculation but strong market fundamentals.
Realistic or not, here’s ENS market cap in BTC’s terms
As such, the prevailing conditions support a further uptrend. If these conditions hold, ENS could surge and break the $40 barrier and find significant resistance at $42.
