Between October 10 and October 15, ETH rose 9.4%, at one point reaching a two-week high of $2,687. However, despite this rise, the price of Ethereum has fallen 25% over the past three months, disappointing investors, especially given the lack of demand for the recently launched Ethereum Spot exchange-traded fund (ETF) and concerns about Ethereum's activity on the blockchain. This is telling.
While the recent rise in the price of #ETH is encouraging, the #Ethereum network has seen a significant decline in decentralized application (DApp) transaction volume. In the past seven days alone, DApp activity on the Ethereum network has fallen by 23%, leading to speculation that the ETH price could face further downward pressure if this trend continues.
It should be noted that even since mid-July, when the cryptocurrency's market capitalization has been relatively stable, the ETH price has been affected by a number of factors. Indeed, excluding stable coins, the cryptocurrency's market capitalization has fallen by just 2% over the past three months, from $2.14 trillion to $2.09 trillion. In contrast, ETH's decline has been more pronounced, dropping from US$3,450 to US$2,590 over the same period.
This discrepancy between the price of ETH and the broader market suggests that investor sentiment towards Ethereum may be waning. The main reason for this underperformance is the stagnant overall value of the Ethereum #blockchain (TVL).
According to DefiLlama, Ethereum's TVL has remained relatively stable at around 19 million ETH over the past two months. While Ethereum continues to dominate the decentralized finance (DeFi) space with a TVL of $48 billion and a 55% market share, some investors see the lack of TVL growth as a sign that Ethereum's potential is waning.
By comparison, Ethereum's closest competitor, the BNB blockchain, is also showing stability in TVL, which still stands at around 8.1 million BNB. Despite this, Ethereum's TVL stagnation has done little to bolster investor confidence in the network's near-term growth potential.
The recent decline in Ethereum's DApp transaction volume, which has fallen to $21.5 billion over the past seven days, is alarming, but it is not limited to the network.
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