📉 Analysis: Weak network performance, uncompetitive yields, and declining validator growth are dragging down #Ethereum’s activity and demand.

Below are 5 factors signaling deeper struggles as the new year approaches 👇

1️⃣ Falling Gas Fees:

Ethereum gas fees dropped from $70M to $47M over three weeks, signaling reduced on-chain activity and demand, pressuring $ETH prices.

2️⃣ Unattractive Staking Yields:

Staking yields (2.95% on Lido, 2.69% on Coinbase) lag behind 4.5% U.S. Treasury bonds, limiting investor interest and inflows.

3️⃣ Validator and Staked ETH Decline:

Validators peaked at 1.08M but fell to 1.05M, while staked ETH dropped from 34.6M to 33.8M, hinting at waning confidence.

4️⃣ Low Market Momentum:

ETH volatility rose to 81%, yet upside potential remains low without new catalysts like #DeFi growth or #ETF staking.

5️⃣ Altcoin Weakness:

Bitcoin dominance (57%) signals Ethereum’s underperformance, with retail trading and funding rates dropping sharply.