The price of ether (ETH) has fallen below USD 2,200 on March 9 and since then tried to recover. Altcoin fell by 14% in March, and the decline hurt the mood of investors, especially since the wider cryptographic market dropped by only 4% in the same period.
Adding moods to the bear, traders are also worried about further correction of ETH prices after a 34% weekly decrease in decentralized exchange (DEX) in the Ethereum network.
Blockchains are arranged according to 7-day volumes DEX, USD. Source: Developma
The DEX volume on Ethereum has dropped by 34% in the last seven days, which also affected its solutions of layer 2, such as the base, arbitrum and polygon. The market staggering also hit some Ethereum competitors, and the Solana Dex solar activity dropped by 29%, and Sui fell by 17%. On the other hand, the BNB chain recorded 27% of the weekly volume escalate, while Canto increased the impressive 445%.
Negative trends Ethereum include a 85% decrease in the Maverick protocol and a 46% drop compared to the previous week. More precisely, the fees for pancakswap – the best DEX on the BNB chain – crossed those on Uniswap. While Ethereum remains a leader in Dex volumes, falling fees reduce the demand for ETH.
The best reported reports at 7-day fees, USD. Source: Developma
Pancakswap, which only operates on the BNB chain, generated 22.3 million dollars in seven days, exceeding the uniswap, which works on Ethereum, Base, Arbitrum, Polygon and Optimism. Other signs of the weakening of Ethereum fees include Lido ending Jupiter Solana and Aave, a leading loan protocol based on Ethereum, generating less fees than a meteora, an automated market manufacturer and liquidity supplier based on salty.
Ethereum leads in total blocked value, but the gap narrows
On the other hand, Ethereum remains the dominant leader in total blocked (TVL) at $ 47.2 billion, but a 9% weekly decrease significantly reduced the gap with competitors. In addition, the layer 2 ecosystem showed the growing signs of weakness within seven days preceding March 18.
The highest blockchains ranked according to the total blocked value, USD. Source: Developma
TVL Solana fell by 3%, while the BNB chain recorded a 6% escalate in deposits compared to the previous week. Negative events for TVL Ethereum include a 11% decrease in Stargate’s finances in seven days, 9% of the deposit decline to the creators and 6% of the decrease in Spark.
Weakening Ethereum indicators in the field of Onchain indicators adapted to the reduced demand for long long in ETH, because their bonus on point markets has fallen below 5% of the neutral threshold, signaling the weaker trust of traders.
Ether 2-month Futures contract annual bonus. Source: laevitas.ch
The current 3% annual Futures ETH bonus is the lowest in over a year, emphasizing the indigent demand from the persistent traders. Meanwhile, Ethereum Exhereum (ETFS) current funds have recorded USD 293 million in net drains from March 5, signaling indigent institutional interest.
After the improvement of Pectra Eth, he needs a competitive advantage and sustainable adoption
Ethereum also stands in the face of growing competition from Solana in the Memecoin sector, especially after launching the official Trump token (Trump). At the same time, the throne and Solana captured a total of $ 75 billion in Stablecouins, using lower transaction fees. By adding to pressure, hypervilic future, eternal futures, introduced their own blockchain, additionally questioning the market position of Ethereum.
Related: Hyperliquid opened the door for “democratized” hunting for cryptographic whales: analyst
All this has developed among sizzling developers among investors and developers about whether the Ethereum Layer-2 solutions are disproportionately using extremely low implementation fees. Basically, the decrease in DEX market share reflects indigent institutional interest, especially since Ethereum native profits are only 2.3% after correction by inflation -based supply.
In order for the ether to regain the shoot, it must demonstrate a clear competitive advantage. The upcoming “Pectra” update must provide a real path to accept users; Otherwise, the chances remain set to ETH, exceeding his rivals.
This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.
