Ethereum’s Weekly Transaction Volume Reaches $60 Billion Indicating Potential for Continued Network Activity
-
Ethereum has marked a significant milestone with $60 billion settled in weekly transactions, showcasing a robust resurgence in network activity.
-
As Ethereum’s usage escalates, an impressive 78% of its holders are currently in profit, reflecting positive on-chain fundamentals amid a recovering market.
-
According to recent analysis by IntoTheBlock, this surge in transaction volume indicates a strong demand for Ethereum, despite its price fluctuations.
Ethereum reports $60 billion in weekly transactions, revealing strong demand and significant holder profitability in a recovering market.
Examining Price and Volume Correlation in Ethereum Transactions
Historically, the price and transaction volume of Ethereum have shown a strong correlation. During the late market phase of 2021 and early 2022, both metrics experienced peaks as speculative trading flourished. However, a noticeable decline occurred in mid-2022 as the crypto market faced a bearish sentiment.
Source: IntoTheBlock
Currently, Ethereum is trading at $3,178.93, with a 24-hour trading volume of $48.48 billion. Despite a minor decline of 0.70% in the last 24 hours, the asset has appreciated by 28.92% over the past week, underlining the resilience of network engagement.
Analyzing Key On-Chain Metrics for Ethereum
Ethereum’s ecosystem has displayed strong metrics, with data from DefiLlama indicating a Total Value Locked (TVL) of $59.327 billion. Additionally, stablecoins within the Ethereum network show a considerable market cap of $89.517 billion.
In just the past day, Ethereum processed $2.387 billion in transactions and recorded significant inflows of $72.74 million. Furthermore, active addresses totaled 391,248, with roughly 64,793 new addresses being created, signifying continued network adoption.
Over the past week, transactions valued over $100,000 accounted for $51 billion in activity, which illustrates heightened participation from large-scale investors, further validating Ethereum’s strong market engagement.
Holder Composition and Current Market Signals
Currently, 78% of Ethereum holders are in profit, revealing a stable investment environment. Notably, large holders maintain control over 53% of the total token supply, reflecting a significant concentration of wealth.
The asset also correlates closely with Bitcoin, boasting a correlation coefficient of 0.84, indicating that Ethereum’s price movements typically align with the broader crypto market trends.
Source: IntoTheBlock
The majority of Ethereum holders are long-term investors, with 74% having held their assets for over a year. Additionally, net exchange flows indicated a withdrawal of $388.68 million in ETH from exchanges over the week, suggesting a strong tendency among users to transfer assets into private wallets and reduce sell pressure.
Market signals, particularly from “In the Money” and “Concentration” indicators, portray a largely bullish sentiment, indicating potential growth in the foreseeable future.
For further insights, explore our detailed Ethereum Price Prediction for 2024-2025 .
Conclusion
In summary, the elevated transaction volume and favorable on-chain metrics underscore Ethereum’s dynamic network activity and robust user engagement. With a significant proportion of holders in profit and a growing transaction landscape, Ethereum indicates a healthy ecosystem poised for future developments. As market signals trend positively, continued observation of these dynamics will be crucial for investors and stakeholders.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Will there be a Solana ETF by the end of 2025?
Cboe BZX filed four applications for spot Solana ETFs earlier this week.The approval path for additional spot crypto ETFs should become clearer with a pro-crypto White House administration.
Changes at the SEC start well ahead of Inauguration Day
One federal judge’s rulings this week found that the SEC had overstepped its authority and must vacate the Dealer Rule
Today's Fear and Greed Index fell slightly to 93, and the level is still extremely greedy