On paper, Ethereum looks like the healthiest blockchain on the planet right now. However, the network booming Because everyone is rushing towards the exit.
The Ethereum network is currently handling an unprecedented amount of traffic, according to the latest on-chain data from analytics firm CryptoQuant.
Key metrics such as active addresses, token transfers, and smart contract calls managed to surpass even the peak of the 2021 bull market euphoria.
Ethereum spot price ($ETH) is currently more than 50% below its peak.
The illusion that the network grows
High network activity does not automatically mean high demand for asset purchases.
Currently, the Ethereum blockchain is experiencing a surge in transactions simply because investors are actively moving their funds around.
Users interact with smart contracts to close decentralized finance (DeFi) positions, unstake assets, and transfer tokens to exchanges.
CryptoQuant’s analysis shows that $ETH The inflow to centralized exchanges (compared to Bitcoin) is perfectly consistent with Bitcoin’s sharp decline. $ETH/BTC price ratio.
This essentially proves that a significant portion of this recording network activity is simply investors moving their assets around. $ETH Sell on the exchange/.
According to the latest data, the one-year change in Ethereum’s realized market capitalization has turned negative.
Realized capitalization measures the total value of all tokens at the last moved price. This means that realized capital leaves the asset.
After all, the data shows that Ethereum’s liquidity is evaporating.
