Ethereum

2024

Block

Summer

<p>Summer 2024 marks a notable slowdown for Ethereum, the world’s second-largest crypto. Recent data reveals a significant decrease in trading volume and the number of transactions on its network during August.</p>
<h2 id="h-une-activite-en-berne-sur-le-reseau-ethereum">Activity Slump on the Ethereum Network</h2>
<p>The situation is worrying for the second-largest crypto. Ethereum is facing a <a href="https://www.cointribune.com/en/crypto-ethereum-etfs-are-experiencing-a-record-series-of-outflows/" target="_blank" rel="noopener noreferrer nofollow">growing disinterest from institutional investors</a>, accompanied by a significant slowdown in transactions.</p>
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<p>August 2024 proved to be particularly bleak for Ethereum. According to <a href="https://www.theblock.co/post/313003/ethereum-trading-volume-transactions-decline" target="_blank" rel="noopener noreferrer nofollow">Block data</a>, the seven-day moving average of daily volume dropped by about 55% compared to the previous month. Daily economic throughput drastically decreased, from $6.56 billion at the end of July to just $2.9 billion currently.</p>
<p>This downward trend is also evident in the number of daily transactions. Last Sunday, the Ethereum network recorded only 1.07 million transactions, its lowest level in several months.&nbsp;</p>
<p>This is a significant drop compared to the peak of 1.32 million reached last March. Cumulatively, August has so far recorded 27.27 million transactions, a figure not seen this low since May 2020.</p>
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<h2 id="h-les-facteurs-derriere-ce-ralentissement">Factors Behind This Slowdown</h2>
<p>Several factors can explain this drop in activity on Ethereum. Coinbase analysts point out that this phenomenon is part of a seasonal cycle, with summer traditionally being a slower period for financial markets. They note, however, that the decline is less pronounced than in previous years.</p>
<p>Another key factor is the decrease in institutional interest. <a href="https://www.cointribune.com/en/bitcoin-vs-ethereum-etfs-show-divergent-flows/" target="_blank" rel="noopener noreferrer nofollow">Spot Ethereum ETFs underperform</a> compared to their Bitcoin counterparts, indicating a lack of enthusiasm from institutional investors. Valentin Fournier, analyst at BRN, even recommends favoring Bitcoin, expecting Ethereum to continue lagging in the coming weeks.</p>
<p>Despite these worrying indicators, some experts remain optimistic in the long term. A recent prediction even suggests that <a href="https://www.cointribune.com/en/ethereum-will-surpass-bitcoin-in-2029-according-to-an-expert/" target="_blank" rel="noopener noreferrer nofollow">Ethereum could surpass Bitcoin</a> in market capitalization by 2029.</p>

Crypto: Ethereum transactions fall by 55%, is the end near?

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