Ethereum is considered the “leader of altcoins”. But are other altcoins following his lead right now? That does not seem to be the case at the moment. While some altcoins are going up, others are going down, but the second generation altcoin hasn’t moved much. And this lack of movement is now beginning to affect more than just the spot market.
How? ‘Or’ What?
An interesting observation came from the fact that Ethereum investors have slowed down their investments in futures. Volumes of the derivatives market today reached a 6-month
A big reason behind this anomaly could be the fact that Ethereum’s price movement has been stable. ETH has not moved much in the last 4 days and has changed by only 1.05%. After a good start to the month, this consolidation might not be the worst, but it isn’t the best either.
In any case, this has led to a slowdown in spot volumes as well as they fell to a 7-month low.
The effects of the same could be seen on validators over the course of the week. Since transactions have come down, validators’ revenue came down as well. Currently, validator revenues are at their lowest level in 9 months at just $ 510,000.
As a side effect of the lack of transaction activity on-chain, the gas fees usage fell to the lowest in over 45 days as well. If transaction counts fall, fewer fees will be charged.
So can Ethereum fix this problem?
Well Ethereum can’t, but investors can, and at the moment short term (1 day – 3 month) holders are at their peak after months. Their increased contribution can probably help in kick-starting the price movement again.
In addition, a little more optimism could be induced among these investors, because more than 96.83% of the addresses are profitable. These figures are the highest that Ethereum investors have ever seen.
So, if STH and MTH continue to HODL and don’t sell, Ethereum could potentially go up again. And as a result, the present scenario would turn into a break instead of a halt.
