Chainlink Bulls Set Sights on $8; Experts Recommend October Alternatives

Analyzing Ethereum’s Market Journey in 2023

Chainlink Bulls

Delve into a comprehensive examination of Ethereum’s market trajectory in 2023, focusing on its NFT dynamics, key metrics, and the emergence of spot ETFs.

In 2022, the cryptocurrency industry experienced an unforeseen downturn, with Ethereum (ETH) suffering a significant 68% decline in value.

Although 2023 offered a glimmer of hope, with ETH recovering nearly 35% of its losses amid a market-wide resurgence, its current price of $1,620 as of October 20 still falls short of its previous highs.

Ethereum has faced various challenges in recent times, dampening its once meteoric rise. One indication of its struggles is the drastic decrease in ETH’s total value locked (TVL), plunging from a staggering $108 billion in November 2021 to a mere $20 billion by October 2023, marking an 82% drop.

Declining NFT Market

In January 2023, Ethereum’s NFT sector encountered significant headwinds. The initial vigorous activity, witnessing over 28,000 NFTs minted daily on Ethereum, experienced a sharp downturn.

As of October 20, daily mintings had dwindled to below 3,500, representing an 88% decline. Increased competition from other blockchain networks, potential oversupply, and general market volatility contributed to this significant decrease.

Trading platforms like OpenSea, previously bustling with sales, experienced a slowdown, especially after the first quarter, reaching their lowest point by September. Ethereum’s NFT trading volume also contracted by 39.6% from Q1 to Q2 2023, according to CoinGecko.

In June, the launch of Ethscriptions aimed to revolutionize the NFT space by allowing users to inscribe “non-financial data” on Ethereum’s network. However, Ethscriptions encountered obstacles, including the withdrawal of the Ethereum Punks collection following a request from Yuga Labs, the entity behind CryptoPunks.

These challenges faced by Ethereum’s NFT sector and Ethscriptions highlight broader concerns within the Ethereum ecosystem, shedding light on competitive, regulatory, and inherent protocol-based challenges.

Key Metrics

ETH Daily Transactions

ETH’s daily transaction count represents the number of transactions processed on the Ethereum blockchain within a day. In May 2023, the average count was approximately 1.14 million, but it decreased to 980,000 by October 20, reflecting a 14% decline.

A high transaction count indicates robust network usage and utility, serving as a gauge for network health.

Daily Active Addresses

Daily active addresses indicate the number of unique addresses that actively send or receive Ethereum on any given day. In April 2023, the average count was 471,000, but by October 20, it had dropped to 369,000, showcasing a 21.7% decline.

The significance of this metric lies in its measurement of user engagement and network popularity. A decreasing trend suggests a potential shift in interest or a consolidation phase.

Daily Onchain Volume

Daily onchain volume represents the total value (in USD) of all transactions on the Ethereum blockchain within a day. From a substantial $3.92 billion in March, it decreased to $1.41 billion by October 20, indicating a 64% reduction.

This metric sheds light on the monetary value of assets moving within the Ethereum network. A decline may imply fewer high-value transactions or a decrease in the value of assets held on Ethereum.

ETH Transaction Fee

Transaction fees are payments made by users to compensate for the computational energy required to process and validate transactions on the Ethereum network. Transaction fees peaked at $21.89 in May but plunged to a mere $1.99 by October 20, reflecting a 90.9% decline.

While high fees can discourage users and lead to decreased network usage, a sharp decline may indicate improved network efficiency or reduced demand.

Follow AsumeTech on

More From Category

More Stories Today

Leave a Reply