The post Ethereum to recover? Key signals indicate a surge in network activity! appeared on BitcoinEthereumNews.com.

TVL and stablecoin market cap inflows indicate a confidence uptick. Ethereum could be on the verge of a DeFi revival after weeks of declining demand. The Ethereum [ETH] network demonstrated a noteworthy decline in network activity over the last few months. An outcome that was a reflection of the state of DeFi in an environment characterized by weak demand. Ethereum has historically demonstrated strong network activity and engagement in its DeFi ecosystem especially during bullish market conditions. The market has so far achieved a bullish performance week, with rate cut announcements acting as the catalyst. Will this be enough to reignite interest in Ethereum’s DeFi landscape? So far the Ethereum network has registered some healthy activity that may point towards recovery. The network’s stablecoin market cap might offer some perspective of the situation. Ethereum’s stablecoin market cap (green) peaked at $82.154 billion in April and has been declining since then. It recently bottomed out at $78.20 billion at the start of August. It has since bounced back slightly to its $83.84 billion level at the time of observation. Source: DeFiLlama The Ethereum TVL (blue) also dipped considerably since its $66.91 billion local peak in June, to sub $43 billion lows. However, it has since recovered to $47.79 billion. This recent recovery may indicate the return of confidence in the Ethereum network. Is Ethereum out of the woods yet? Ethereum registered a notable spike in its network to fee ratio since mid-September. This is the second highest uptick in the metric that we have observed in the last 3 months. It confirms rising fees as a result of fees generated by more network activity. Source: IntoTheBlock This surge demonstrated correlation ETH’s recent bullish price action and was in line with improved sentiment in the crypto market. It may thus not be…

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Filed under: News - @ September 21, 2024 7:03 pm