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In terms of market capitalisation, Ethereum is the second most valuable cryptocurrency. Any movement it makes will, of course, draw everyone’s attention. Alternatively, the lack of movement in this circumstance. Anthony Di Iorio, the co-founder of Ethereum, recently left the crypto-space due to safety concerns. He said, “I’m leaving,” as he announced his departure.
“A lot of times [cryptocurrency is] not … what the world needs”
Could he be right though? And, have investors already begun reacting to this? These metrics can help you answer that.
Ethereum has gone quiet
More than the network and its development, the value of a project is what investors expect from it. At press time, Ethereum was trading at $1862, down 55.44 percent from its all-time high in May. The volume of the altcoin began to decline at the same time as the price. Even though several big jumps near the end of June were viewed as promising signs, volumes quickly fell below $6 billion.
Right now, the alt is struggling to even break the $5 billion mark in daily trade, which does not bode well for ETH.
The nett transfer volume from/to exchanges, which appeared to be leaning towards higher transfers from the exchanges, supports this. Furthermore, aggregate liquidity on exchanges revealed that ETH had more sell liquidity.
Ethereum has not been very volatile in terms of velocity over the course of 2021. Simply said, fluctuating velocity is not conducive to market expansion. Minor turbulence occurred around the May ATH before the indicator returned to its previous level of consistency. Even if this isn’t a bearish sign, it does demonstrate how low or non-existent ETH activity has been recently.
What else is down?
The number of active addresses has dropped to a three-month low. The sign was down to March levels on the 30-day SMA. Along with it, the number of transactions has decreased, and it is now at the same level as it was in February. This 5-month low adds to the reality that Ethereum network activity is low and declining. Even social sentiment dropped to a four-month low, indicating that investors were losing interest in ETH.
However, with the upcoming London hard fork, maybe this scenery could change up a little bit. Ethereum founder Joseph Lubin believes that post the August 4 hard fork, ETH demand would increase exponentially. Ethereum will become a deflationary asset as a result of this hard fork, which is also projected to drastically enhance its price.
Only time will tell what will happen, but for the time being, Ethereum will most likely remain dormant.