Ethereum Trading Drops, Unique Addresses Rise
Key Takeaways
Ethereum is experiencing a significant decline in trading activity on decentralized exchanges (DEX). At the same time, the number of unique addresses continues to rise. On-chain data suggests that Ethereum may be undervalued.
DEX Trading Volume Plummets
The trading volume on Ethereum-based DEX has drastically decreased in recent weeks. Within a week, it dropped by 50%, while on a monthly basis, it fell from $86.02 billion in January to $14.54 billion in February – a decline of 83%.
This trend could indicate waning interest among market participants. Nevertheless, the number of unique Ethereum addresses continues to grow. Between January and March, it increased by 11.93%. This could mean that new users are joining while existing users reduce their trading activity or shift to other forms of ETH usage, such as staking.
Fewer Active Addresses – A Sign of Market Weakness?
The number of active Ethereum addresses has significantly declined. On January 25, it stood at 588,782, but by March 16, it had dropped to 262,466 – a decrease of 55.4%.
At the same time, Ethereum’s price fell from $3,353 to $1,887, representing a 43.7% decline. Historically, decreasing activity indicates weaker demand, raising concerns about a prolonged downtrend.
On-Chain Indicators: Is Ethereum Undervalued?
The Market Value to Realized Value (MVRV) indicator suggests that Ethereum may be undervalued. The value dropped to 0.9 – a level that has historically coincided with market bottoms.
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Past market cycles, such as in 2018, 2020, and 2022, show that an MVRV value below 1.0 often preceded recovery phases. Since February, the MVRV value has fallen by 30%, drawing parallels to previous corrections.
Are Investors Capitulating or Entering an Accumulation Phase?
Another key indicator, the Spent Output Profit Ratio (SOPR), currently stands at 0.97. A value below 1.0 means that most ETH transactions are being conducted at a loss – a typical sign of capitulation.
Historically, such phases often mark local bottoms as selling pressure eases. This could indicate that Ethereum is in an accumulation phase before a potential recovery.
Ethereum at a Turning Point
Current market data suggests two possible scenarios. On one hand, declining trading volumes and lower network activity point to continued weakness, which could push prices further down. On the other hand, the low MVRV and SOPR values signal a possible bottom formation, which has often led to recoveries in the past.
Whether Ethereum continues to decline or initiates a trend reversal depends on how market participants react to the current data.
Our Assessment
Ethereum is currently showing mixed signals. While trading activity is slowing, the number of unique addresses is rising. On-chain data suggests that Ethereum may be undervalued. Historical patterns indicate that a recovery is possible, but in the short term, the risk of further losses remains. Investors should closely monitor market developments.
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $2,010.65 |
| 24h % | 0.93 % |
| 7d % | 7.40 % |
| 30d % | -27.98 % |
| 60d % | -39.47 % |
| 1y % | -40.24 % |
| Market Cap | $242,665,645,104.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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