The amount of Ethereum (ETH) transfers has decreased, reaching a 1-month low of 24,471,607, as acknowledged by on-chain metrics provider Glassnode.
This change in trend was triggered by the sharp correction, which the second largest cryptocurrency experienced after falling to lows of $ 2,000 from an all-time high (ATH) of $ 4,350. ETH was hovering around $ 2,392 during intraday trading, according to CoinMarketCap.
Furthermore, the total fees paid on the Ethereum network reached an 11-month low of 105,547 ETH. The high cost has become a significant challenge that ETH has faced, having at one point hit a record that was out of the reach of the average trader.
Ethereum on crypto exchanges decline
According to data science company IntoTheBlock:
“The balance of ETH on exchanges continues to fall. Over the past 7 days, the IntoTheBlock network flow indicator detected 528,040.60 ETH withdrawn from centralized exchanges. “
Earlier this month, Ethereum exchange entry volume hit a monthly low of $ 34.27 million.
This trend signifies a sit-on-the-fence attitude because more users are keeping their Ether in cold storage for speculative or future purposes.
Ethereum’s dominance is growing
Despite the current drop in prices on the Ethereum network, market analyst Lark Davis believes that ETH’s dominance continues to grow. He explained:
“Ethereum’s dominance is growing because there is a lot of organic demand due to the explosion of applications, wagering rewards, and expected future innovation. It doesn’t require billionaires to buy it to keep up with demand. “
Davis had previously stated that the large flow of money was reaching Ethereum’s decentralized finance (DeFi) sector.
Additionally, DeFi on the ETH network experienced exponential expansion in recent months as the number of users increased by 1,300% to reach 2.1 million. The total locked value (TVL) in smart contracts skyrocketed by 9,000% and stood at $ 113 billion.
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