Warning signs: Ethereum daily active wallets hit a 67-day low

Ethereum daily active wallets have been dropping at a steady pace, lately. Data obtained from Santiment Research Company showed that Ethereum daily active wallets hit a 67-day low today, closing out at 351.3k addresses transacting on the network.

According to Santiment, the last time DAA was this low was June 7th. Though the long-term fundamentals for the second most valuable crypto asset are great, these warning signals are worthy of note.

Why this matters: Nairametrics’ recent study on the second most valuable crypto market, showed that in 2020, when the number of active ETH wallets increased by 1%, its price climbed up, on average, by 0.18% the same day.

Breaking the $400 resistance level represents a dramatic shift for Ethereum, which stood at around the $112 price level in March following the market carnage that occurred as a result of the ravaging COVID-19 virus.

It should, therefore, be noted that Ethereum 2.0 is imminent. This will see the crypto asset switching from the current proof-of-work model to proof-of-stake. It will also optimize sharding techniques which will help hasten up transactions on the blockchain.

However, Ethereum holders have been euphoric for good reason, considering the massive price surge since Black Thursday five months ago.

Ethereum is at +2.78 deviations above its neutral resting position when it comes to weighted social sentiment, which is easily an all-time high.

Ethereum is a decentralized system, fully independent, and not under anybody’s authority. It has no pivotal point, and its platform is connected to thousands of its users through their computing systems around the world, which means it’s almost impossible for Ethereum to go offline.



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