Ethereum

Ethereum Gets Negative Figures In Early 2023

Key Points:

The average transaction volume of Ethereum on the 7th moving average was 37,715.274 transactions, a record low in 2 years.
ETH started 2023 with a price of $1,200, compared to a year ago at $3700, a decrease recorded after more than a year of up to 67.5%.
On this day last year, Ether saw $95.4 billion in total value lock of the network, now, that number is down to just $22.8 billion.

On January 1, Glassnode data shows that the average transaction volume of Ethereum (ETH) on the 7th moving average was 37,715.274 transactions, a record low in 2 years.

This seems to be a negative signal for the coin with the second-largest market capitalization at the moment. ETH started 2023 with a price of $1,200, compared to a year ago at $3700, a decrease recorded after more than a year of up to 67.5%.

In the past year, Ether’s strongest rally was before The Merge update took place in the hope that the Ethereum network, when switching to the Proof-of-Stake (PoS) mechanism, will have more changes.

ETH daily chart. Source: Coincu

The Merge is the Ethereum blockchain’s transition from a mining-based Proof-of-Work (PoW) blockchain to a more energy-efficient, scalable PoS system.

The Merge was the joining of the original execution layer of Ethereum (the Mainnet that has existed since Genesis) with its new Proof-of-Stake consensus layer, the Beacon Chain. It eliminated the need for energy-intensive mining and instead enabled the network to be secured using staked ETH.

However, after the Terra disaster caused the market to be in the red, Ether only recovered from its yearly low of $886 to $2000 on August 14. Since then, we haven’t seen this price again until the end of 2022.

It can be seen that 2022 is not a perfect year for Ether, even the decentralized finance (DeFi) sector of the network has seen a serious decline. On this day last year, Ether saw $95.4 billion in total value lock (TVL) of the network, now, that number is down to just $22.8 billion, according to DefiLlama.

Ether chain TVL. Source: DefiLlama

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.