Oh, darling, it’s been a rough couple of months for our favorite cryptocurrency, Ethereum. Ether (ETH) has been tumbling down the charts like a clumsy toddler on roller skates, hitting levels we haven’t seen since the fabulous year of 2020. And guess what? It’s throwing a pity party about it while Bitcoin (BTC) and other fancy altcoins are having a blast without it.
According to the detective work from CryptoQuant, one major culprit behind Ethereum’s sad saga is its seriously waning network activity. It’s like a party where nobody shows up, and all the punch is gone. This low-key vibe is making ETH inflate like a sad balloon that keeps losing air, slowly drifting into the abyss.
Where Did All the Users Go?
Active addresses on Ethereum are dropping like bad habits after New Year’s. Plus, fees are so low that you can almost hear crickets chirping during transactions—record lows, folks! This lack of action has sent the ETH burn rate plummeting like a lead weight. Remember the burning mechanism Ethereum launched? Yeah, it’s now more of a flickering candle.
The Merge promised to keep things spicy by shifting from Proof-of-Work (PoW) to Proof-of-Stake (PoS), insisting on burning more ETH than it produced. But after last year’s Dencun upgrade tossed some blobs into the mix and slashed fees, it’s more like someone turned on the minting faucet full blast while the burning matches are wet.
“Ethereum’s recent underperformance can be largely attributed to diminished network activity, as evidenced by declining active addresses and reduced transaction fees. These factors, coupled with a low burn rate post-Dencun upgrade and a continuous high inflation rate, continue to exert downward pressure on the asset’s value,” said the ever-so-enigmatic CryptoQuant analyst, EgyHash.
ETH’s 4% Daily Drama
But wait—don’t toss the confetti just yet! EgyHash believes there’s a glimmer of hope if we can spark some network activity back—more active addresses, higher fees, and voilà, more ETH gets burned. Bring on the revival!
As of this moment, ETH is worth a measly $1,790, down 4% daily, thanks to news about trade tariffs that hit the U.S. Remember, ETH already lost 16% of its value this month and has plummeted over 60% since its peak of just over $4,000. Oof!
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2025-04-04 06:51