As before Cointelegraph reported On March 29, Visa will allow its partners to use USDC on the Ethereum blockchain network to complete transactions.
Since then, interest in Ethereum has been on the rise in both futures and options markets, with the first approaching $ 7 billion, the highest in more than a month.
The options market for Ethereum is particularly optimistic
According to Cantering Clark, a cryptocurrency trader and analyst, the Ethereum options market is showing big bets towards June.
The strike price with the highest interest outstanding is $ 3,200. While this does not necessarily mean that the odds of ETH hitting $ 3,200 are high, it indicates that there is significant interest at that price level. The trader said:
“Is it the start of the $ ETH season? The options market is making big bets in June. The 3200 strike has a bull’s eye.”
While there could be multiple reasons why traders might expect ETH to surpass $ 3,000 in June, one of the biggest factors is the highly anticipated EIP1559 upgrade.
EIP1559 goes live in July 2021, which would overhaul the existing fee structure of the Ethereum blockchain.
Simply put, the proposal burns fees paid in ETH instead of paying miners, which proponents say should stabilize fees for transactions on the Ethereum blockchain. Such as Cointelegraph reported, the cost of using the blockchain has risen 77% in recent days, in line with a 31% increase in the price of Ether.
EIP1559 essentially burns some of the ETH paid for trades, which should reduce the circulating supply of ETH and thus put upward pressure on its value.
Given that many options targeting the June strike price would expire just before the implementation of EIP1559, this means that traders are expecting a rally entering the implementation phase.
Huge ETH outflows are also noted
Meanwhile, Ki Young Ju, the CEO of CryptoQuant, points out that Ethereum has seen a massive outflow of exchanges in recent days.
Earlier this week, Ki noted that 400,000 ETH left Coinbase, which could signal a spike in institutional interest in ETH. He said:
“A few days ago, 400k $ ETH poured out of Coinbase. Speculative bet, institutions are buying $ ETH now.”
Outflows often indicate a strong accumulation by institutions and wealthy individuals because when whales buy cryptocurrencies on an exchange, they typically move their holdings to self-hosted wallets.
Hence, opinion is generally optimistic for Ethereum for the coming months as positive on-chain data complements a strong fundamental catalyst in EIP1559.
In addition, the number of active addresses continues to grow, with foreign exchange reserves constantly decreasing, indicating rising user activity and demand for ETH.
Glassnode also reported that the number of non-zero addresses reached a new high, suggesting that user activity is on the rise.
Researchers at Glassnode said
“Ethereum $ ETH Number of non-zero addresses just reached ATH of 56,543,380”