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Active user wallets on Ethereum DeFi have dipped 40% in one month

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According to DappRadar, the unique active wallet count on the Ethereum decentralized finance market has seen a significant drop. Between mid-February and the time of writing, unique active DeFi wallets on Ethereum have dipped almost 40%.

While Ethereum gas fees seem to have bottomed out, the high transaction costs that have characterized the network over the past few weeks appear to have resulted in a marked effect on DeFi user statistics.

Source: DappRadar

Major DeFi protocols like Synthetix and Curve have also seen between a 10% and 15% decline in 24-hour active user counts. Indeed, Cointelegraph previously reported that daily DeFi volumes have retreated significantly amid high gas fees.

However, popular decentralized exchanges like Uniswap and 1inch have seen an influx of new users over the past month. DappRadar data shows Uniswap’s user base growing 22%, while 1inch has seen an increase of 35% in new users in the last 30 days.

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The user adoption slump for Ethereum-based DeFi has also coincided with a major influx of users to the Binance Smart Chain. PancakeSwap, the leading BSC-based DEX has seen its user base increase over 200% in the last month.

While Ethereum DeFi numbers appear to be sinking, the nonfungible token marketplace is seemingly immune from the current trend. NFT marketplaces like OpenSea and Rarible have posted the largest user base increase in the last month, with their percentages rivaling those posted by popular BSC-based DEX platforms.

Though the numbers show BSC protocols pulling in new users, it is important to note that decentralized finance on the Binance Smart Chain is nowhere near as diverse as the Ethereum DeFi arena, with its plethora of lending, derivatives and asset marketplaces.

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However, SushiSwap recently went live on BSC, with 1inch also announcing a planned expansion to the network.

Meanwhile, Ethereum proponents are gearing up for the anticipated EIP-1559 gas fee overhaul slated for July.

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Ethereum

Massive drop in Ethereum exchange reserves signals imminent supply shock, ETH eyes $8,000

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  • Over 400,000 ETH was pulled out of Coinbase, dropping exchange reserves and driving a supply crisis.
  • Average Ethereum gas fees stay above $20 due to an increase in pressure from smart contracts on the network’s blockchain. 
  • Analysts who are bullish on Ethereum expect ETH price to cross $5000 in an upward climb. 

Institutional investors are bullish on Ethereum with rising capital inflow. Ethereum reserves across exchanges have dropped as outflow increases. 

Coinbase notes massive Ethereum exchange outflow

Coinbase noted a withdrawal of 400,000 Ethereum tokens, and according to community-driven crypto platform CryptoQuant, it is likely that the outflow was institutional activity. Analysts expect a bullish impact on ETH prices. 

400,000 Ethereum tokens are the equivalent of $1.5 billion, withdrawn from the second-largest cryptocurrency exchange. The exchange outflow indicator is considered a sign of increased outflow and a supply shortage in Ethereum. 

Ethereum Exchange Outflow

Ethereum Exchange Outflow.

Ethereum has posted over nearly 20% gains in the past two weeks. 

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Interestingly, there is a spike in whale activity on the Ethereum network. Over $188 million worth of Ethereum was moved between two anonymous cryptocurrency wallets in a single transaction. 

A mysterious whale initiated the transaction, and it was sent to an unknown recipient. The details of the transaction are as follows:

Whale activity on the Ethereum Network

Whale activity on the Ethereum Network.

With news of Bitcoin ETF getting approval by the Securities & Exchange Commission next week, experts are awaiting Ethereum’s turn. Analysts are of the opinion that following Bitcoin ETF approval, capital inflow to Ethereum and altcoins will increase. 

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Pseudonymous cryptocurreny trader and analyst @jroberts3334 has set a target of $8000 for Ethereum for February 2022. 

Simon Dedick, Managing Partner of Moonrock Capital, is bullish on Ethereum; he tweeted:

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FXStreet analysts have evaluated the ETH price trend to analyze where altcoin is headed next. Analysts have set a target of $5200 for ETH price. 

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Ethereum 2.0 Next Steps to Mainnet Shared by Ethereum Foundation

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Ethereum (ETH) developers have entered final phase of testing before hotly anticipated ETH1-ETH2 transition

Tim Beiko, Ethereum 2.0 researcher and coordinator at Ethereum Foundation, published a recap of Amphora devnet launch. Why is this milestone special for progress to Ethereum 2.0?

Amphora workshop has been completed successfully

Mr. Beiko has taken to Twitter to share his blog post about the Amphora workshop that launched the interoperable devnet of Ethereum 2.0 Merge.

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As such, Ethereum’s (ETH) core developer community entered the last phase of its incentivized testing, i.e., “devnets.” Ethereum 2.0 devnets should be considered “public networks with hardened specs for community to test.”

Amphora meetup was joined by a number of teams behind ETH2 client implementations: Besu, Erigon, EthereumJS, Geth, Nethermind, Nimbus, Lighthouse, Lodestar, Quilt, Prysm and Teku.

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Amphora’s agenda included five milestones (M1-M5); all of them were accomplished successfully.

10,000 validators, 100 nodes: Welcome to Pithos

To achieve an M5 milestone, a network of 10,000 validators across 100 nodes launched on the top of proof-of-work (PoW) consensus, successfully transitioned to proof-of-stake (PoS) and finalized the chain.

On Oct. 14, 2021, the more stable version of Amphora testnet, Pithos, launched to facilitate upcoming experiments.

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As covered by U.Today previously, Ethereum 2.0 Merge was successully activated in an interoperable multi-client testnet in a secret location on Oct. 8, 2021.

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Ethereum Looks Set To Explode As 400,000 ETH Exits Coinbase

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On-chain data shows crypto exchange Coinbase saw a withdrawal of 400k Ethereum yesterday. This could be a sign of activity from institutional investors, and could prove to be bullish for the coin.

Coinbase Observes Outflow Of 400,000 ETH

As pointed out by a CryptoQuant post, about 400k ETH (1.5 billion at the current exchange rate) was withdrawn yesterday from the crypto exchange Coinbase.

The indicator used here is the Ethereum outflow, which shows the total number of coins exiting wallets of the exchange.

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When the metric shows a big spike, it means a lot of ETH was withdrawn from the exchange. Investors usually take out a lot of coins to either hodl them or to sell them through OTC deals.

So, constant outflows can mean that there is a buying pressure in the market and investors feel bullish on Ethereum.

Now, here is how the chart for the indicator looks like for the crypto exchange Coinbase:

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Ethereum Coinbase Outflow
ETH's outflow showed a large spike yesterday | Source: CryptoQaunt

As the above graph shows, the crypto exchange Coinbase saw a spike of a massive 400k Ethereum in outflows yesterday.

Outflows this big can be a sign of activity from institutional investors as certainly normal holders won’t have these many coins to move around.

Institutional investors being bullish on ETH can mean huge things for the crypto. If ETH has to move to the next leg up, it will need a lot of money pumped into it, and this usually means whales like institutional investors need to get involved.

As these outflows already signal that institutional investors are taking their coins out of exchanges to perhaps hodl them, ETH’s outlook looks bullish.

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Ethereum Price

At the time of writing, ETH’s price floats around $59.9k, up 9% in the last seven days. Over the last thirty days, the crypto has amassed 25% in gains.

The below chart shows the trend in the price of the coin over the last five days:

Ethereum Price Chart
ETH's price makes a push up and approaches the $4k mark | Source: ETHUSD on TradingView

ETH has made a big push in the last few days as the coin now approaches a test of the $4k mark. It’s unclear at the moment if ETH can keep this momentum going and reach a new all time high (ATH) soon, or if it will falter once again.

f the outflows are anything to go by, the general sentiment seems to be bullish and institutional investors getting involved can help with the big price pushes the crypto needs to break important resistance lines.

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