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The recent market crash caused Ethereum (ETH) to lose more than half its price from a high of $ 4,350 to a low of $ 2,000.
The second-largest cryptocurrency based on market cap is up 2.91% in the past 24 hours to trade at $ 2,682, according to CoinMarketCap.
According to digital asset firm Glassnode, Ethereum exchange entry volume hit a one-month low of $ 34,277,495.88.
This trend signifies a sit-on-the-fence attitude because more users are keeping their Ether in cold storage for speculative or future purposes, which is generally bullish.
Market analyst Lark Davis recently stated that the large flow of money was accumulating in Ethereum’s decentralized finance (DeFi) sector, and this was bullish as well.
DeFi has helped Ethereum’s bull run since the second-largest cryptocurrency broke the previous record of $ 1,400 set in 2018. Some features like smart contracts on the ETH network are in high demand in the non-fungible token (NFT) sectors. ) and DeFi.
DeFi on the ETH network saw 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.
ETH hourly rates have fallen from a record $ 10.5 million
According to data science company IntoTheBlock:
“Ethereum hourly rates have fallen from the recent ATH of $ 10.5 million on May 18 to an average of $ 284,888.33 in the last 3 days.”
ETH has faced steep fees, forcing some users to avoid it for cheaper alternatives.
On the other hand, Ethereum is experiencing a supply shortage, as explained by IntoTheBlock.
“Of the current 116.1 million ETH in circulation: 5.21 million ETH deposited in the ETH2 participation contract, 9.58 million ETH currently locked in DeFi protocols and 5.92 million ETH have been withdrawn from the centralized exchanges “.
Time will tell if supply shortages and low exchange entries on the ETH network will drive the price of Ethereum higher.
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