Mon, August 05, 2024 at 16:26

• 

  Joy

  • Hey Annie!

  • Have you heard about the latest on Ethereum?

  • It's quite a rollercoaster!🎢

  • 
• Annie

  • Oh, really?

  • What's happening with Ethereum?😮

  
• 

  Joy

  • Well, despite the approval of a spot ETF in the U.S., interest in Ethereum is really dropping this year.

  • Crypto Economy reported it last Friday.

• Annie

  • That's surprising!

  • I thought the ETF approval would boost interest.

  • What's causing the decline?🤔

  
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• 

  Joy

  • Yeah, you'd think so!

  • But the number of new Ethereum wallets has hit its lowest point this year.

  • The seven-day moving average of new addresses is just 82,150, the lowest since December 2023.

• Annie

  • Wow, that's a big drop.

  • Why are new addresses declining so much?📉

  
• 

  Joy

  • It seems like the activity on the Ethereum blockchain network has decreased a lot in July.

  • The number of active addresses also dropped from 918,000 in June to 564,800 in August.

  • That's almost a six-month low!

• Annie

  • That's a huge decrease!

  • Are there any specific reasons for this decline?🤨

  
• 

  Joy

  • One reason could be the success of competing blockchains like Solana and Bitcoin.

  • Solana, often called the 'Ethereum killer,' has been growing in the decentralized exchange ecosystem, especially with the popularity of Memecoin.

• Annie

  • Interesting!

  • So, people are moving to other blockchains?

  • Is there anything else affecting Ethereum?🤔

  
• 

  Joy

  • Yes, another factor could be the recent launch of spot ETFs in the U.S.

  • Some investors are choosing these funds over buying crypto directly, which might be impacting the demand for Ethereum wallets.

• Annie

  • That makes sense.

  • How about the Dencun upgrade?

  • Did it have any impact?🛠️

  
• 

  Joy

  • Good point!

  • The Dencun upgrade in March 2024 did reduce the total supply of Ethereum, but it didn't lead to the expected price increase.

  • This might have dampened investor interest further.

• Annie

  • So, how is Ethereum doing in the market right now?📊

  
• 

  Joy

  • Not great, unfortunately.

  • Ethereum is currently trading below $2500, down 11.7% in the last 24 hours and more than 25% in the past week.

  • 

  • It's facing a market-wide crisis.

• Annie

  • That's tough.

  • What about the Ethereum spot ETF?

  • Any updates on that?📉

  
• 

  Joy

  • The NYSE Ethereum spot ETF has seen $500 million in cumulative net outflows since its launch.

  • It's not looking too good.

• Annie

  • Wow, that's a lot of outflows.

  • So, is this news a bad sign for Ethereum and the market?🤔

  
• 

  Joy

  • Yeah, I'd say it's pretty bearish news.

  • The declining interest and activity, coupled with the competition from other blockchains and the lackluster performance of the ETF, are all negative signs for Ethereum right now.

• Annie

  • Thanks for the detailed update, Joy.

  • This really helps with my investment decisions.😊

  
• 

  Joy

  • Anytime, Annie!

  • Always here to keep you in the loop.

  • Stay tuned for more updates!📢

  • To sum up, this article is considered a 😱Bearish for investors!!