Following the transition to a Proof-of-Stake network, Ethereum has witnessed a significant contraction in its circulating supply, reaching the lowest point in over a year and a half. The recent removal of approximately 86,219 ETH from the market, equating to $300 million, suggests a growing demand for the cryptocurrency. Concurrently, the establishment of new daily addresses on the Ethereum network has surged, hitting a yearly high.
Surge in Network Demand
The Ethereum network’s conversion to Proof-of-Stake seems to correlate with heightened activity levels, evidenced by the sharp increase in daily new addresses. With over 116,000 new addresses recorded in a single day, the platform’s user engagement is on the rise. This bustling activity has brought down the total ETH in circulation to a mere 120.07 million, reflecting the most substantial supply squeeze since “The Merge.” Access COINTURK FINANCE to get the latest financial and business news.
Financial Indicators on the Rise
Ethereum’s decentralized finance ecosystem has also shown robust growth, with a reported rise in the total value locked up in these financial applications. The ecosystem’s TVL now stands at $51 billion, marking a 21% increase from the previous month. Lido Finance, a leading protocol in the chain, has likewise seen its TVL swell by 27% during the same timeframe.
In line with these developments, Ethereum’s decentralized exchanges have experienced a remarkable surge in trading volumes, leaping by 161% over the last month. This increase is part of a broader altcoin market rally that has seen heightened transactional activity across the board. The NFT sector within the Ethereum network is not left behind, registering a 17% rise in sales volume to $617 million, even as the number of actual sales transactions has fallen by 57%.
The uptrend in Ethereum’s metrics, including a spike in exchange reserves to 14.1 million ETH, points to a robust market sentiment leaning towards ‘greed’, according to the crypto fear and greed index. These indicators underscore a period of intensified trading and valuation for the second-largest cryptocurrency by market capitalization.