- Ethereum DEX trading volume has plummeted to its lowest level since February.
- This is due to a general decrease in demand on the network.
Ethereum daily trading volume [ETH] Decentralized exchanges (DEXs) have fallen to their lowest levels since February, according to data from . artemis.
According to the on-chain data provider, the total trading volume on these DEXs increased to $4.8 billion year-to-date on March 5, but has since started a downward trend.
By April 21st, it had fallen below $1.5 billion and remained at a two-month low of $1.2 billion.
User looks for other options
The decline in Ethereum DEX trading volume is due to a decrease in the number of active traders on these platforms.
According to data from blockthe number of traders using Ethereum DEX has fallen from more than 95,000 at the beginning of the month to about 63,000 last week.
This comes amid a widespread decline in user activity on the network over the last month. Data from Artemis showed that the daily number of active addresses completing at least one transaction on Ethereum has decreased since March 23.
Daily active addresses on April 23 were 403,000, with user activity down 23% over the past month.
Due to the low demand on the chain, the number of transactions completed on the chain per day is also decreasing. Over the 30-day period under consideration, daily transactions in Ethereum decreased by 8%.
As daily transactions decrease on the network, pricing will also be affected. Ethereum’s total fees have fallen by 29% in the last month.
Is ETH inflationary?
As previously reported, the drop in Ethereum network activity has caused the supply of ETH to become inflated. This comes as the market witnesses a surge in the number of ETH coins being created and added to the circulating supply.
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This is caused by a drop in Ethereum user activity and fees, which in turn reduces the burn rate of ETH coins and increases the supply.
According to data from ultrasound.money, ETH supply increased by 6,867.44ET in the last month. At the time of writing, the circulating supply of the coin was 120,076,965 ETH.
