- Ethereum whales have started selling their holdings, even at a loss, as the cryptocurrency’s value slips below the $3,000 mark.
- Network growth for Ethereum has also seen a decline, indicating a waning interest in the digital currency.
- Simultaneously, the Non-Fungible Token (NFT) sector, which heavily relies on the Ethereum network, is also experiencing a downturn.
Ethereum whales offload their holdings amidst market uncertainty, leading to a decline in network growth and a slump in the NFT sector. What does this mean for the future of Ethereum?
Ethereum Whales Begin to Sell
As per data from Lookonchain, a significant Ethereum whale recently sold 6,714 ETH, equivalent to $19.5 million, at a price of $2,903 per ETH, resulting in a loss of $6.45 million. This sell-off has created substantial selling pressure in the market, potentially driving down the price of Ethereum further as more sellers enter the market than buyers. The willingness of this whale to sell at a loss could trigger further market unrest. At the time of writing, Ethereum was trading at $2,918.79, with a 5.64% decline in the last seven days and a 48% drop in trading volume during the same period.
Declining Network Growth and Interest in Ethereum
Alongside the sell-off, Ethereum’s network growth has also seen a decline, indicating a loss of interest in the cryptocurrency among new addresses. Despite the lower prices, new addresses seem uninterested in Ethereum. However, the trading velocity of Ethereum has seen a surge, as indicated by its rising velocity. Despite the overall activity on the network remaining consistent, as suggested by the unchanged gas usage, the number of NFT trades on the network is decreasing, pointing to a potential downturn in the NFT sector.
Impact on the NFT Sector
Notably, popular NFT collections such as Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) are not attracting attention on marketplaces. Other networks like Bitcoin and Solana are performing relatively better than Ethereum and have captured a significant market share in recent days.
Conclusion
The sell-off by Ethereum whales, coupled with declining network growth and a slump in the NFT sector, paints a challenging picture for the future of Ethereum. However, the increased trading velocity and the consistent overall activity on the network provide some optimism. As the market continues to evolve, it remains to be seen how these developments will impact Ethereum’s long-term prospects.
