Has Ethereum hit bottom?
Key Indicators Make ETH Price Predictions
The number of daily unique addresses interacting with Ethereum has shrunk by 7% since March 19, a figure that clearly reflects the downward trend in the number of unique on-chain interactions with the Ethereum network.
As of April 17, a total of 1.2 million transactions were completed on Ethereum. However, worryingly, the network’s daily transaction volume has dropped by 14% in the past 30 days, which undoubtedly exacerbated market concerns.
The decrease in Ethereum user activity has spread like ripples to the non-fungible tokens (NFT) and decentralized finance (DeFi) areas within its ecosystem, causing the performance of both to be significantly affected.
When it comes to NFT activity on Ethereum, sales on the network have taken a huge dive over the past month. According to authoritative data from CryptoSlam, NFT sales on the PoS network reached only $288 million in just 30 days,
That’s a staggering 57% drop from before.
A significant indicator of the decline of the network DeFi vertical is its total value locked (TVL). According to the latest data released by DefiLlama, as of press time, Ethereum’s TVL has shrunk to US$49 billion, a 14% decrease from the peak of US$57 billion year to date. This trend makes people wonder about the prospects of Ethereum. Feel worried.
Due to sluggish activity on the Ethereum network, its supply has shown signs of inflation. This means that the number of ETH coins being created and added to the circulating supply is increasing, which undoubtedly adds downward pressure on altcoin prices.
According to precise data provided by Ultrasound.money, the supply of ETH has surged by more than 2,667 ETH in the past week alone, a number that has caused widespread concern in the market.
Has the price of ETH hit bottom? Santiment offers unique insights in its latest post, arguing that the drop in Ethereum network fees may signal that its price is nearing a bottom and that a rebound may be around the corner. However, to determine for sure whether the price has truly bottomed, looking at ETH’s “Age of Consumption” metric will be key.
This indicator can accurately track the flow of previously idle tokens.
When the consumption age of tokens shows an upward trend, it often means that a large number of long-term held and idle tokens have begun to circulate, which is undoubtedly an important signal of a huge change in the behavior of long-term holders.
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