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Possible revision: What is the impact of the Ethereum NFT market slump on ETH?

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Falling Interest in NFTs

In the last month, sales of Ethereum NFTs have dropped by a significant 55%. Popular collections like BAYC, MAYC, and Crypto Punks have all seen a sharp decrease in sales and floor prices.

Surprisingly, NFTs on other networks like Solana and Bitcoin are gaining more attention compared to Ethereum.

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Source: Crypto Slam

Furthermore, there has been a noticeable decline in daily active addresses and gas usage on the Ethereum network, suggesting reduced activity overall.

This trend may indicate a decrease in Ethereum’s popularity as an ecosystem.

Despite the hype around ETH and its price growth, a waning interest in Ethereum’s ETFs could pose a long-term challenge for ETH.

Source: Santiment

Currently, ETH is trading at $3,786.76 with a slight 0.68% decrease. The decline in network growth indicates a decreased interest from new addresses in ETH.

New addresses’ lack of interest suggests that the market may not be willing to invest in ETH at its current price.

Some bullish investors may wait for a price correction before considering more ETH investments.

Additionally, the increased velocity of ETH trading indicates a higher frequency of ETH transactions taking place.

Only time will reveal whether this trading velocity aligns with ETH’s price movement, giving hope to bullish investors.

Source: Santiment


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Address Trends

Looking at holder statistics, most addresses appear to be profitable based on the high MVRV ratio for ETH.

Although a high MVRV ratio could lead to more holders selling, the presence of long-term holders, indicated by a high Long/Short difference, suggests that a major sell-off might not be imminent.

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