Dealing with the constant selling pressure hasn’t been easy for any altcoin. Well, not even for the king alt Ethereum. ETH has been following the broader market cues. In fact, the past week registered around 10% gains but a weekend sell-off saw ETH’s prices cut by more than 3%.
A hidden gem?
Ethereum is continuing to show mixed signals on the network. As per Santiment, average transaction fees on Ethereum have dropped to $0.88. This is the lowest value seen on the network since July 2020. Falling transaction fees on Ethereum are a result of the 75% price drop since November which has radically reduced utilization.
Source: Santiment
Gas fees have been a source of concern in the Ethereum community. However, the current state of fees shouldn’t be a positive signal for the community.
Well, the falling demand for Ethereum in the market across different sectors such as NFTs shows a falling volume. And, a lack of volume regards diminishing activity on the network which in itself is a concern.
That being said, as per reports from Glassnode, the total value in the ETH 2.0 deposits reached an all-time high of 13,018,325 ETH. As we edge closer to the Merge, investors are increasing and are continuing to deposit their holdings in the staking contracts.
Source: Glassnode
Moreover, the number of new addresses (7d MA) reached a 1-month high of 3,199 on 10 July. This should come as a boost to the community as it hints at the growing strength of the network.
Source: Glassnode
Also, over the past week, around $650 million worth of ETH was taken out of exchanges. This serves as a huge turnaround for ETH investors as exchange outflows continue to indicate resilience from holders.
What about ETH now?
According to the reports, Ethereum’s DeFi total value locked fell from $59.42 billion (Q1 2022) to $34.21 billion (Q2 2022)- a 42.4% decline.
ETH was trading just below the $1,150 mark, at press time, after a major downward turn on 10 July. However, it has been able to recover 6.78% of its position over the past week.