- Trader Joe deployed its stablecoin pools on Ethereum recently.
- Decentralized apps (dApps) sector could benefit ETH blockchain.
Co-founders of crypto insights provider Glassnode who goes by the name of ‘negentropic’ on Twitter, have shown belief in future of Ethereum (ETH). The second largest crypto asset is trading at a market price of $1832 at publication time. Moreover, it currently holds 19% dominance over the digital asset sector according to data aggregator CoinMarketCap.
Time to Shift From Bitcoin Ecosystem
In the tweet, they addressed the second largest crypto token as a ‘ticking bomb.’ The co-founders said it is time to shift from Bitcoin to altcoins. A TradingView chart attached with the post exhibits a downtrend. However, the post described the momentum as a ‘golden mid-term opportunity.
A user replied saying that with the new Bitcoin ecosystem, it is highly doubtful that Ethereum will do better. Last month, CEO of crypto miner Marathon Digital said BTC blockchain is a solution to all sorts of problems. Moreover, he called ETH blockchain more convoluted than the crowned crypto asset.
Recently, decentralized crypto exchange Trader Joe deployed its stablecoin pools on Ethereum. The move could lead to increased transactions on the network. As of 2021, 74% of stablecoins are issued on ETH blockchain according to blockchain technology company ConsenSys.
Crypto Exchanges Seeing Decline in Ethereum Volume
Glassnode data shows total active addresses on Ethereum have remained consistent this year. The number skyrocketed to 1.4 Million addresses on December 9, 2023. It has since dropped to a range between 300K and 500K. A breakthrough, however, sent the number over 600K on January 8, 2023.
Exchange volume shows withdrawals have exceeded deposits in ETH. Netflow in major crypto exchanges stayed negative primarily. However, it has hardly impacted ETH price accordingly. Additionally, exchange balances have declined from around 18% in January to nearly 12% in August 2023.
Total validators on the network have risen to 700K this year. First quarter of the year did not see any validator exiting the ecosystem. Nonetheless, they left in huge numbers in April 2023. The month saw an over 14K decline in headcount in a single day. Participation rates on the blockchain have remained over 99% for a better part.
Binance, the largest crypto exchange globally, announced they are adding ETH/FDUSD trading pairs to the zero fee trading program. This could lift ETH price considering activity may rise on the platform. However, regulatory pressure has left the exchange in a rock and a hard place. What’s more, the company even came close to shutting its operations in the United States.
ETH price gained almost 40% in January this year and maintained an uptrend till April. Since then, the momentum has remained choppy with a resistance near $2023 and a support around $1625. Ethereum being an ecosystem for decentralized apps (dApps) could benefit from blockchain games. Data aggregator DappRadar recently reported blockchain games dominate the dApp ecosystem.