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Ethereum has marked a significant milestone with $60 billion settled in weekly transactions, showcasing a robust resurgence in network activity.
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As Ethereum’s usage escalates, an impressive 78% of its holders are currently in profit, reflecting positive on-chain fundamentals amid a recovering market.
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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.
