According to data from Santiment, developer activity on the Ethereum blockchain network has seen parabolic growth as of late, rising to May 2019 levels.
In May, the Ethereum price was hovering at around $260, nearly 40 percent higher than its current price of $186.
Ethereum developer activity has increased in the past several months (source: Santiment)
Is developer activity an indicator of the future price?
Previously, Ivey Business School professor JP Vergne found in a study that the best predictor of the short term price trend of a cryptocurrency is developer activity. He said:
“We found that the best predictor of a cryptocurrency’s exchange rate is the amount of developer activity around it.”
The developer activity on the Ethereum network is likely on the rise in anticipation of the launch of Ethereum 2.0, and reports indicate that major corporations are paying attention to the said launch, as it would allow the blockchain to process information more efficiently.
In an interview with Decrypt, EY’s global blockchain head Paul Brody said that the firm is processing more than 10,000 transactions on Ethereum for Microsoft, and larger capacity would allow firms to better utilize Ethereum to settle data.
An analyst, who operates with the alias Cactus, said:
“ETH development activity has been going parabolic the past three weeks, early 2020 we are going to be seeing some major announcements from the ethereum team… It will take other blockchains years to catch up in terms of development.”
State of the DApps, an analytics firm that evaluates the usage of decentralized applications,