- Activity related to NFT trading and staking has ensured an increase in dApp activity.
- While new demand for ETH has declined, withdrawals from exchanges have surged.
Ethereum [ETH] It stands out among the many blockchains available, with dApp trading volume increasing by 92.43% in the past seven days.
These are applications that run on blockchain networks, using smart contracts to power transactions and user interaction. In most cases, low transaction fees lead to a surge in trading volumes.
Ethereum Beats BNB Chain and Others
This is because users do not have to pay exorbitant fees to easily swap or transfer tokens, although there was a time when Ethereum performed better than other chains in this regard, back when transaction fees were higher.
However, this dominance may be related to cheaper gas fees made possible by the Dencun upgrade that took place in March. At the time of writing, Ethereum dApp volume was $71.13 billion.
Source: DappRadar
This value was much higher than that of BNB Chain and Polygon. [MATIC]and Tron [TRX]But one thing AMBCrypto noticed was that the increase wasn't across applications.
For example, dApps such as Blur, EigenLayer, and Uniswap. [UNI] The NFT aggregator recorded a notable increase, but other coins such as Uniswap V2 and V3 were unable to match it, recording declines.
The data suggests that there was a lot of trading and staking going on with NFTs, which influenced the increase in trading volume. However, the trading volume of tokens on the blockchain was nowhere near that level.
It is therefore not surprising that the network has seen a significant decline in its UAW, which stands for Unique Active Wallet, a term used to measure user engagement and activity.
An increase means high user activity, while a decrease indicates fewer active transactions, which was the case for Ethereum.
ETH is caught between two sides
Meanwhile, the price of ETH was trading at $3,365, down 2.32% in the past 24 hours.
As things stand, ETH price is likely to continue to fall or remain flat despite optimism that the token will perform well this month.
One of the reasons for this prediction is Ethereum’s network growth: according to AMBCrypto’s analysis, the blockchain’s network growth has decreased to 23,300.
This metric measures the number of new addresses that have completed a successful transaction for the first time.
Source: Santiment
An increase in the number means that blockchain is growing in popularity, while a decrease means that adoption is low, which is the case for ETH.
Historically, when network growth increases, it doesn't take long for the price of ETH to spike; the opposite happens when the number of new addresses decreases.
As mentioned above, in the short term it is possible to sell ETH below $3,300.
While the outlook is bearish in the short term, the long term looks promising for ETH. This is due to changes in the net positions of Ethereum exchanges.
The metric tracks the 30-day supply of cryptocurrency stored in an exchange's wallet.
An increase means that exchange deposits are increasing, which may increase selling pressure, whereas a decrease means withdrawals are occurring, which tends to reduce selling pressure.
Source: Santiment
Ethereum [ETH] Price forecast 2024-2025
According to Glassnode, ETH holders have been withdrawing their assets from exchanges for several months, which, if continued, could help stabilize the price of ETH.
Therefore, ETH may aim to reach $4,000 this quarter or surpass its all-time high.
