A decrease in the volume of stablecoins on the Ethereum blockchain could signal that the cryptocurrency is entering a bearish phase. The volume of stable currency on the Ethereum blockchain, according to CryptoQuant, decreased from $84 to $40 billion. When the supply of stablecoins increases, it means that the demand for tokens on the blockchain may increase. Additionally, it strengthens the ecosystem's own cryptocurrency. For Ethereum, the drop in volume indicates that most ERC-20 tokens have performed poorly. This may indicate a potential transition of the cryptocurrency into a bearish phase. The difference in MVRV long and short positions along with holder sentiment showed that the price of ETH could rise.
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ERC-20 tokens refer to fungible tokens created using the Ethereum blockchain. Historically, if a stablecoin's volume drops to $30 billion, ETH enters a bear market. Therefore, there was a risk.
But if this happens, the price of the cryptocurrency is unlikely to fall below $3,000. If this remains the case, ETH could have a chance to retest $4,000 and above.
On the other hand, high volatility will lead to a correction by sellers. For ETH, it remains uncertain where the price will head next.
However, one thing seemed all but clear: holders might not succumb to bearish demand that would push the price lower than expected.
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