The number of Ethereum (ETH) transfers has decreased to a monthly low of 24,471,607 when recognized chain metrics supplier Glassnode.

This trend reversal was triggered by a sharp correction experienced by the second-largest cryptocurrency as it fell to a $ 2,000 low from an all-time high (ATH) of $ 4,350. The ETH was slightly around $ 2,392 during intraday trading CoinMarketCap.

In addition, the total fees paid in the Ethereum network achieved 11-month low, 105,547 ETH. High costs have become a major challenge that ETH has faced, given that it was at a record high at one time, which was not within the reach of the average trader.

The encryption change in Ethereum is reduced

By for data science company IntoTheBlock:

“The ETH stock market balance continues to decline. Over the past seven days, the IntoTheBlock mains indicator found that 528,040.60 ETHs were removed from the central exchange. “

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Earlier this month, Ethereum switched inflows prerecorded monthly minimum of $ 34.27 million.

This trend implies an attitude of sitting on the fence as more users keep their ether in cold storage for speculative or future purposes.

Ethereum’s dominant position is growing

Despite the current price drop in the Ethereum network, market analyst Lark Davis believes ETH’s dominant position will continue to grow. He explained:

“Ethereum’s dominance is growing because there is so much organic demand for it because of the explosion of applications, the awards, and the expected innovations of the future. It doesn’t require billionaires to buy it to sustain demand.”

Davis was before stated that a large cash flow was seeking decentralized financing for Ethereum (DeFi) sector.

In addition, the DeFi ETH network experienced explosive growth in recent months, when the number of users increased by 1300% and reached 2.1 million. The total locked value (TVL) of smart contracts increased by 9000% to $ 113 billion.

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