The analyst noted that over the past 18 months, the price of $ETH has decreased by about 30%, while the volume of stablecoin transactions on the network has increased by 200%. He considers such dynamics a "bullish signal."
Van de Poppe reminded that in 2019, the growth of network activity also preceded the rise in price. According to him, the market does not always react immediately to fundamental changes.
"At the early stage of growth, the market does not always react immediately. This was the case with Ethereum in 2019: initially, the price remained stagnant, and then, against the backdrop of a spike in stablecoin transactions, growth began. The price follows fundamental changes, and it is likely that this will happen again with Ethereum," wrote Michael van de Poppe.
The expert added that similar discrepancies were observed in June 2022 after the collapse of the Luna ecosystem, in March 2020 during the COVID-19 pandemic, and in December 2018 amid a general market decline. In all these cases, in his opinion, the market provided an opportunity for purchase.
In December of last year, Michael van de Poppe spoke about the undervaluation of Bitcoin in relation to gold.
