This analysis was conducted by Christopher Brookins the founder of Pugilist Venture, a quantitative digital currency fund founded out of Carnegie Mellon. Brookins analyzed some fundamental metrics and created some of his own, a simple correlation matrix between the earlier mentioned indicators to change in the value of Ethereum (ETH) is quite revealing. According to the analysis, there is a dichotomy between practice and theory of what basic demand indicators should be driving price. Presently, according to the correlation matrix, it seems quality (median and average transaction value) instead of quantity (active addresses, gas, transaction count, and more) is pioneering the price movements of Ethereum (ETH). The metrics measuring the balance or ratio between quantity and quality, example median transaction volume, average transaction volume, and active addresses transaction volume, all have positive correlations with the value of Ethereum (ETH). Hence, it seems that an increase in the transaction volume in the network in relation to quantity metrics, preferably for the use of basic decentralized apps solving real life issues such as decentralized finance, will be the key to finding a stable price bottom.Transaction volume to active addresses ratio is a metric that was introduced some time ago, and it pointed out its usage as an equilibrium gauge for BTC by measuring the change between quantity vs. quality fundamentals. Nevertheless, unlike Bitcoin (BTC) TAAR, it seems the network dynamics of Ethereum don t match that of BTC. This is not surprising due to the fact that they are two separate digital currencies solving two different issues. But, rather than TAAR serving as an equilibrium gauge for Ethereum, it might act as a directional price gauge instead. This means that if the 1k level of TAAR holds, then ether will likely bottom out around the $100 level. Nevertheless, if not, and TAAR falls back to the red line (500 level), black line (300 level), or even 100 level, then the value of Ethereum (ETH) is likely to decline further.
Several Fundamental Ethereum (ETH) Indicators Are Pointing To Undervaluation - Smartereum