There are still opportunities to improve the Ethereum network. A reflection of this fact has yet to be seen in the price of the second most valued cryptocurrency. It may keep falling for the foreseeable future.
Positive Metrics for The Ethereum Network
As the crypto cold continues, prices plummet more. It is occurring irrespectively of the reality that Ethereum’s network is still displaying good metrics. Measurements are made in terms of stakes and actions.
At this time, the Ethereum network has reached a degree of relative strength. More than 14 million ETH have been staked; this is plausible. There are now 439,425 active validators on the network. The current interest rates bring the total to over $18 billion. As such, it accounts for 11.6% of the circulating ether.
The current stakes annual interest rate is close to 4%. This rate is far higher than that of most conventional high street banks. Inert ETH can no longer be removed from the Beacon Chain. For the next several months, access is out of the question. It will, after that, likely be released in stages.
There has been an uptick in traffic on the system since the Merge on September 15th. A little 0.18 percent is added to the total. 10,500 ETH have been added to the circulation as a result. The EIP-1559 procedure will burn more ETH; hence the issuance will go negative. This often takes place when the network is under heavy use.
Specific predictions concerning the network have been made by “Ultrasound.Money.” In the following two years, it projected a 3.5% decrease in circulation in the total amount of Ethereum. The predicted 3.5% decrease brings the overall supply down to 116 million.
The current daily destruction rate of ETH is around 550. The value of what was burned is approximately $710,000. OpenSea, an NFT platform, is the biggest gas guzzler, with Uniswap coming in second. Current gas prices average roughly $0.07 per fill-up, which is a record low.
During the third quarter, there was a drastic drop in the average daily trading volumes of Ethereum NFTs. On October 3rd, Messari made the announcement. However, the daily trading volume often saw a far smaller decline. According to the research, “this reflects a sticky base of dedicated users at about 40,000 daily.”
There are now 1.2 million daily transactions on the Ethereum network. The activity has been relatively constant over the last year or two. This is encouraging since demand is steady despite the price decrease.
Further Price Drops Are Possible
None of these hopeful numbers have been reflected in the recent market action. It’s terrible news for investors since all signs indicate the market is improving. Ethereum (ETH) is now trading at $1,289, down 1.7% from its early morning high. Since last month, the asset’s value has dropped 18%. The percentage has fallen by 74% from its November peak.
Many experts are predicting even more severe losses and an eventual collapse. The decline is expected to be at near $1,000 or lower.
It hasn’t been able to overcome opposition at higher price points.