As the global cryptocurrency industry is going through a liquidation phase that has seen its market capitalization drop to $900 billion, well below $2 trillion in March of this year, activity on the Ethereum (ETH) network is noticeably slowing. According to the Coin Metrics State of the Network newsletter published on July 12, the number of monthly unique active addresses on the Ethereum blockchain has reached its lowest level since June 20, 2020. Interestingly, the number of active Ethereum addresses recovered in late 2021 and early 2022, reaching approximately 9 million at the end of March this year. However, that number has dropped to 6 million, the lowest level in two years.
In May 2021, the monthly number of active unique Ethereum addresses reached 13 million, after which the price of ETH, the second largest cryptocurrency by value, rose to a new all-time high above $4,000.
However, as a result of the subsequent collapse of the cryptocurrency market and the drop in the altcoin price, the number of active addresses per month dropped below 8 million and subsequently did not reach the 10 million mark.
The lack of investor interest is indicated by the fact that on July 6, over 220,000 coins entered Ethereum exchanges, which is the highest daily volume in the previous 11 months, combined with the highest rate of profit.
On the night of July 12, Ethereum was trading at $1,047 with a daily drop of 7.9% and a weekly loss of 9.3% on a market cap of $125 billion (data from CoinGecko).
As a reminder, the CoinMarketCap community believes that ETH will trade at an average price of $2,529 until July 31, 2022.