The number of Ethereum (ETH) transfers has declined, hitting a 1-month low of 24,471,607 accepted from on-chain metrics provider Glassnode.
This turnaround was triggered by the sharp correction the second largest cryptocurrency experienced after falling from an all-time high (ATH) of $ 4,350 to lows of $ 2,000. ETH was hovering around $ 2,392 during intraday trading, so CoinMarketCap.
In addition, are the total fees paid on the Ethereum network reached an 11-month low of 105,547 ETH. High costs have become a significant challenge for ETH as it once hit a record high that was out of reach for the average trader.
Ethereum on crypto exchanges is declining
according to About the data science company IntoTheBlock:
“The ETH balance on the stock exchanges continues to fall. Over the past 7 days, the IntoTheBlock Netflows indicator has found 528,040.60 ETH withdrawn from centralized exchanges.
Earlier this month, the Ethereum exchange’s inflow volume hit a monthly low of $ 34.27 million.
This trend means a sit on the fence attitude as more users keep their Ether in the cold store for speculative or future use.
Ethereum’s dominance is growing
Despite the current drop in prices on the Ethereum network, market analyst Lark Davis believes that ETH’s dominance will continue to grow. He explained:
“Ethereum’s dominance is growing because there is so much organic demand due to the explosion of applications, staking rewards, and future expected innovations. It doesn’t take billionaires to buy it to keep demand going. “
Davis had previously stated that a large flow of money is finding its way into Ethereum’s decentralized funding (DeFi) Sector.
In addition, DeFi has seen exponential expansion on the ETH network in recent months, as the number of users has increased by 1300% to 2.1 million. Total Value Locked (TVL) in smart contracts shot up 9,000% to $ 113 billion.
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