Today, the cryptocurrency market has not recovered enough to turn up. Therefore, traders can count on gradual drawdowns that will stop and form correction zones. For ETH, each pause will occur in parallel or in sync with BTC (although the “silver” altcoin shows fewer pullbacks on the chart – the last wave of growth was not as absorbed as in BTC). Moreover, players could buy Ethereum and earn 17 percent. Bitcoin has a characteristic profit of only 7 percent. If Bitcoin continues to fall in price, Ethereum may repeat the downtrend with a double or one and a half swing:
● According to the ViewBase report, investors are massively withdrawing ethereum from centralized platforms – the withdrawal amount has already reached $ 683 million, which is equivalent to 203,000 ETH;
● Since January 13, Vitalik Buterin (the founder of Ethereum) has been asking on Twitter about the opinion on worthy competition for ETH (so far, BTC occupies the first line in the survey, the second – ADA, the third – SOL).
If Buterin himself raises doubts about the future of the ETH product with his polls, then why not exchange Ethereum for the same ADA or SOL in time? Moreover, their protocol is more or less perfect. Only news from the UK slows down the desire to sell Ethereum. This country ranks third in ETH holdings, behind only Singapore and Australia. But how can you trust this indicator, if the British for the most part prefer BTC, which dictates the trend to the rest of the market?
Soon even miners will not want to buy ethereum
Not only ETH users, but also its miners are experiencing great annoyance. While the Ethereum ecosystem is improving, developers should take care of burning “excess” tokens in order to reduce their number in circulation. This prevents inflation and increases the value of the altcoin itself. On the other hand, miners lose their profits. Over 500,000 tokens have already been destroyed since last August:
● NFT marketplace OpenSea demanded the destruction of 175,000 ETH;
● 148,000 ETH was liquidated when transferring funds
● Uniswap V2 stripped the fund of 117,000 ETH;
● USDT transactions resulted in the destruction of 72,000 ETH.
Interestingly, the number of ETH wallets is increasing despite the decrease in the capitalization of the altcoin. The last indicator today is 387 billion dollars. As for wallets, the army of those wishing to buy Ethereum has reached 68 million users. It got to the point that the volume of daily ETH transactions is 1.2 million, which indicates the mass integration of the thematic altcoin into various projects. In May 2021, transaction traffic peaked at 1.5 million per day.
The situation is definitely worsened by a high percentage of commissions. The execution of the roadmap to overcome the corresponding crisis is stalling – the developers promised to complete ETH 2.0 last year, but the merger is only 60 percent completed so far.
However, the 34% drop in the ETH rate relative to its last year’s record does not affect traffic much. Thus, writing off Ethereum is out of the question.
