Altcoins have struggled following constant selling strength within the crypto market, and the leading alt Ethereum wasn’t an exception. Ether has mimicked broad market trends. The alternative tokens gained approximately 10% last week before the weekend drop triggered an over 3% slump.
The Hidden Gem?
Ethereum still prints mixed signs on its platform. Santiment’s data shows ETH’s average transaction charges have plunged to $0.88. That represented the lowest mark witnessed on the platform since July 2020. Declined transaction fees on Ether come after the price lost nearly 74% since November, radically reducing utilization.
Gas charges have remained a concern within the Ethereum community. Nevertheless, the current fee status doesn’t mean an optimistic sign for the market players. The fading Ethereum demand in different sectors like NFTs indicates a plunging momentum. Meanwhile, the absence of volume means a reduced activity on the platform, a concern for investors.
In this context, Glassnode’s report shows ETH 2.0 deposits attained an ATH at 13,018,325 Ether. Investors increasingly deposit holdings in staking contracts as we approach the mainnet. Furthermore, the 7d Moving Average shows new addresses hit one-month highs at 3,199 on July 10. That means lucrative developments as it confirms the network’s growing strength.
Moreover, the previous week saw investors withdrawing ETH worth $650 million from exchanges. That meant a massive turnaround for Ethereum enthusiasts as exchange outflows indicate holder resilience.
Ethereum at the Moment
Reports show ETH’s DeFi TVL declined to $34.21B in 2022 Q2 from $59.42B in 2022 Q1, representing a 42.4% slump. Ethereum traded beneath the $1.150 value area during this publication, following the July 10 massive downside turn. Nevertheless, the alternative token gained 6.78% from last week’s level.
Bears continue to dominate the crypto spectrum, with Bitcoin changing weak hands around the $20,000 vicinity. While publishing this content, BTC traded at $19,905.87, losing 0.47% over the past day.
Such narratives mean more potential downswings for Ethereum in the coming sessions. Also, the overall cryptocurrency market capitalization declined by 2.49% over the past 24 hours to $887.33 billion.
Stay tuned for upcoming crypto news.
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