The post Ethereum Faces Critical Junction: Are Low Trading Volumes Indicating Undervaluation or Market Capitulation? appeared on BitcoinEthereumNews.com.

Ethereum faces critical market analysis as trading volumes plummet while unique addresses rise, posing questions about potential re-engagement strategies. The definitive drop in DEX trading volume underscored declining activity, yet the increase in unique addresses indicates a possible shift towards holding strategies. On-chain metrics like the MVRV ratio and the SOPR signal a potential undervaluation of Ethereum, offering insights into investor sentiment. Ethereum’s trading activity declines sharply amidst increasing unique addresses. Is it poised for a rebound, or are deeper challenges ahead? Ethereum DEX volumes plummet by 50% in just one week Ethereum’s decentralized exchange (DEX) market has experienced significant turbulence recently, as trading volumes have witnessed a staggering decline of nearly 50% in just one week. Over the last month alone, the downturn has intensified, with total trading volume remarkably falling from $86.02 billion in January to about $14.54 billion in February—an astonishing 83% reduction in market activity. Source: DefiLlama This notable decline in trading interest raises essential questions about Ethereum’s overall market engagement and future direction. Interestingly, amidst this decline in volume, Ethereum’s unique address count has been on the rise, increasing by 11.93% from January to March, indicating that new participants are still entering the network. Source: Etherscan This trend suggests that while the influx of new users remains strong, existing members of the Ethereum network might be scaling back their trading activities. This mismatch between declining trading volumes and increasing unique addresses indicates a possible shift toward holding or staking assets rather than engaging in frequent trades. Reduced trading – On-chain data reflects a cooling Ethereum market Ethereum’s operational metrics indicate that network activity has recently cooled, with active addresses witnessing a significant drop of 55.4%, falling from 588,782 on January 25 to just 262,466 by March 16. Source: CryptoQuant Simultaneously, ETH’s price has followed suit,…

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Filed under: News - @ March 21, 2025 10:18 am