Ethereum has suffered a loss of activity to blockchains with greater accessibility, more technology, rapid update efficiency and also driven by crypto market narratives.
The positive Momentum sentiment is far below expectations, Open Interest reached US$9.2 billion, an inflow of US$2.12 billion in August 2024, expressing an increase in percentage terms of 30%, below the US $6 billion (50%) between April and May.
Through the Coinbase Premium Gap, a slowdown in selling pressure on the part of the American investor is observed at the same time the entry into a directional pressure triangle emphasizes a sign of lack of investment inflows of vast liquid capital are necessary to see a positive rally no future. Shortly after the FOMC did Ethereum know the price of gas increase, a sign of a possible rotation of treasury yields towards DeFi?
Lending platform Aave saw its fees at $43M in August, up around $1M from March, an insignificant growth.
Ethereum needs to revert back to its mean from an economic point of view. Internally, it goes through several gaps, ignoring the expansion of the technology ecosystem and aligning with the evolution of its competition. Today, the lack of investment is significant, and even small capital inputs and usage cannot be sustained.
Written by Percival
