Worldchain News | The ETH/BTC exchange rate hit a 15-month low. How big are the future opportunities and developments of ETH?

1. The transaction volume on the Ethereum chain has dropped significantly, and even the airdrop interactions have decreased a lot. The Ethereum network gas fee has basically remained below 10 Gwei, and recently even dropped to 5gwei. It can be seen how quiet the transaction volume on Ethereum is.

2. On-chain transaction activities have been greatly reduced, and gas fees have been reduced, which has also resulted in the supply of ETH tokens being greater than the amount of ETH burned in the past 30 days. ETH tokens have also returned from deflation to inflation. The annualized inflation rate in the past 30 days has reached 0.29%, and 28,000 ETH have been added in the past 30 days.

3. Compared with BTC, ETH is in a weak position, and the ETH/BTC exchange rate has also hit a new low in the past 15 months.

4. In the past two months, the relevant ETH addresses of Ethereum founder Vitalik have continued to be transferred to exchanges.

In the past two months, Vitalik-related ETH addresses have deposited a total of 4,400 ETH (approximately US$7.23 million) into the Bitstamp trading platform.

Although this is not enough to affect the price of ETH in terms of quantity and amount, from an emotional point of view, the transfer of ETH by project founders to exchanges will certainly affect investors' confidence in holding ETH.

5. The main event that affected ETH in the past week was that FTX hackers sold ETH and bought BTC starting on October 1.

In November 2022, shortly after FTX filed for bankruptcy, hundreds of millions of dollars began to flow out of the exchange balance and into the hacker's address. The hacker stored 185,000 ETH in 13 addresses and then put it into a dormant state.

After lying dormant for 10 months, the hacker began transferring and selling the ETH tokens in these addresses on September 30.

For example, from September 30 to October 6, hackers transferred a total of 75,000 ETH (US$120 million) from 5 addresses and exchanged these ETH for BTC through various channels. It can be seen that compared with ETH, hackers are more willing to hold BTC.

Currently, hackers still hold 110,000 ETH (US$176 million) in 8 addresses on the Ethereum network. 5 of the original 13 addresses have been emptied. These 110,000 ETH are also potential selling pressure.

This series of negative events regarding ETH has led to the recent weak price of ETH and even shook the confidence of ETH holders.

So, is ETH still worth holding?

Although ETH's price performance is not as good as BTC, I still think ETH is a high-quality currency worth holding for the long term. Let me share some of my views below.

Currently, the overall cryptocurrency market is still in a bear market. In this bear market, most tokens cannot outperform BTC.

Whether in the last 30 days, 1 year or 2 years, there are very few currencies whose price growth has outperformed BTC, so the decline in the ETH/BTC exchange rate is not surprising.