Ethereum, the second-largest cryptocurrency by market capitalization, encountered a whirlwind of criticism and regulatory scrutiny over recent months, leading to a surge in speculative fear, uncertainty, and doubt (FUD) surrounding its future trajectory.
As Ethereum’s price performance lags behind Bitcoin and Solana gains traction, coupled with regulatory concerns over its status as a security, the crypto community is abuzz with speculation.
Ethereum FUD has been growing the last few weeks. But how much of it is real vs just rumors? Let's dive into the facts and onchain data to get a better picture
Based on @intotheblock's weekly newsletter 👇📈
Ethereum has been subject to criticism by many over the past few… pic.twitter.com/U621kiBGT3
— Lucas (@LucasOutumuro) March 22, 2024
Analyzing the facts and data sheds light on Ethereum’s current landscape. While ETH’s price relative to Bitcoin remains subdued, with its ratio hovering near its lowest point since June 2022, on-chain metrics paint a different picture.
$ETH recorded its largest weekly net inflows into exchanges ($720M) since September 2022, as regulatory FUD spread pic.twitter.com/1O8Ai3cD2V
— IntoTheBlock (@intotheblock) March 22, 2024
Ethereum’s daily transaction volumes on the Mainnet soared to levels unseen since May 2022, indicating robust network activity.
Total Amount Of Ethereum Locked In L2s Surpasses 10 Milion
Layer 2 solutions (L2s) have emerged as a key driver of Ethereum’s growth, with Base, Optimism, and Arbitrum witnessing a surge in transactions, doubling compared to the Mainnet. The total amount of ETH locked in L2s surpassed 10 million for the first time, signaling widespread adoption of scaling solutions.
Despite regulatory uncertainties, long-term ETH investors exhibit unwavering confidence, evident in the continual accumulation of ETH in wallets held for over a year. Despite reports of regulatory pressure and dwindling prospects of ETF approval, ETH hodlers remain steadfast, echoing sentiments from previous market cycles.
After BlackRock debuted the first $100M tokenized fund on #Ethereum, the fund wallet 0x13e has attracted ~$100K worth of various #memecoins and NFTs, such as:
• 250K $DETF ($20.7K)
• 10K $RICO ($15.7K)
• 500K $USH ($13.9K)Notably, @BlackRock, in collaboration with… pic.twitter.com/pdNtNhJmrO
— Spot On Chain (@spotonchain) March 22, 2024
Furthermore, BlackRock’s foray into Ethereum’s ecosystem with the launch of a tokenized fund underscores growing institutional interest in digital assets. The debut of the ‘USD Institutional Digital Liquidity Fund’ (BUIDL) in collaboration with Securitize highlights Ethereum’s appeal as a platform for innovative financial products.
Amidst regulatory headwinds and market volatility, Ethereum’s fundamentals continue to strengthen, fueled by growing network activity and institutional adoption. While short-term price movements may be subject to speculation and FUD, Ethereum’s long-term trajectory appears buoyed by a resilient community and robust ecosystem developments.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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