Ethereum Price Update September 13: ETH Sees $1.5 Trillion Stablecoin Surge: But Can Bulls Maintain Momentum?

Ethereum (ETH) has witnessed a remarkable surge in stablecoin transaction volumes, reaching an unprecedented $1.5 trillion within just the last 45 days. 

This increase underscores the growing interest and activity within the decentralized finance (DeFi) sector, despite the volatile market conditions observed during Q3 of 2024. According to Leon Waidmann, an analyst at Onchain Foundation, this metric highlights Ethereum’s critical role in the expanding DeFi ecosystem.

#Ethereum stablecoin volume has soared to an incredible $1.46 trillion as DeFi demand ramps up!👀

In just the past 45 days, volume reached nearly $1.5T, even with the market being boring as hell!💪

It’s mind-blowing how far #ETH has come!🚀 pic.twitter.com/d8iWMYiH1A

— Leon Waidmann | Onchain Insights🔍 (@LeonWaidmann) September 12, 2024

Ethereum (ETH) Outpaces 2022 Stablecoin Volume Highs

Ethereum’s recent stablecoin transaction volume has shattered previous records, including those set in 2022, the year when the Terra/Luna and FTX/Alameda ecosystems faced significant collapses. 

The metric, which began trending upward again in March 2023, has now far exceeded its previous high, recorded before the aforementioned market disruptions. This renewed surge reflects Ethereum’s resilience and continued dominance in the cryptocurrency market.

For Tether (USDT), Ethereum remains the second most significant blockchain platform, trailing only Tron (TRX). Out of the $118 billion USDT supply, over $53 billion is issued on Ethereum as ERC-20 tokens, further cementing its position in the stablecoin market. 

Waidmann pointed out that Ethereum achieved this milestone despite the market’s lackluster performance in recent months, indicating a strong underlying demand for DeFi services.

In addition to the surge in stablecoin transactions, Ethereum’s second-layer (L2) ecosystem is also showing signs of recovery. After experiencing a prolonged decline, the total value locked (TVL) in Ethereum’s L2 networks dropped to its lowest point since mid-February 2024. 

However, recent data from L2Beat indicates a 5.5% increase in TVL over the past week, bringing the total to $33.4 billion. This recovery suggests a renewed interest in L2 solutions, which are essential for scaling Ethereum and reducing transaction costs.

Current Market Performance and Technical Indicators

As of September 13, Ethereum is trading at $2,422.12, reflecting a 3.09% increase over the past 24 hours. With a trading volume of $12.8 billion and a market capitalization of approximately $291.5 billion, Ethereum remains the second-largest cryptocurrency by market cap. The current circulating supply of ETH stands at 120,332,633 coins, with no maximum supply cap in place.

Source: CoinMarketCap

In terms of technical analysis, Ethereum’s price chart on the Binance exchange shows a fluctuating trend over the 24-hour period. After an initial dip below $2,330 between 6:00 AM and 12:00 PM, the price rebounded, reaching a peak of $2,424 around 9:00 PM. 

This upward movement, highlighted by a sharp rise in the evening, indicates strong bullish momentum, potentially driven by positive market sentiment or external factors.

In terms of technical indicators, the MACD indicator points to a probability of a bullish trend as the MACD line has crossed above the signal line. But still histogram has remained much negative, which shows that there is cautious optimism in the market.

Source: TradingView

Relative Strength Index or RSI is currently at 45.85 reading means the Ethereum was at fair or average, not too reductive and not too overly bought zone or oversold zone. This implies that although the market may be constantly exerting pressure to drive prices up, the current prices maybe part of an actual upswing within a persistent downtrend.