In the past few months, cryptocurrencies have witnessed sharp declines in price as the market continues to thread in the bear zone. Ethereum has been one of the worst-hit crypto assets in the market, touching a low of $850 during the recent market sell-off. Ethereum addresses are also dropping significantly every day. According to reports, the total number of active Ethereum addresses has reached 28,149, which is its lowest since January last year.
Ethereum Dormant Addresses Have Increased
While the number of active Ethereum addresses keeps reducing, the number of dormant addresses for the crypto asset has been increasing. This shows that the market and its participants are increasingly pulling out of the market as the crypto meltdown continues.
Recent data from Glassnode showed that the ETH network has also seen a notable decrease in the number of transactions. According to the crypto data aggregation platform, the number of weekly ETH transactions reached a 20-month low of 40,691.060.
A Sharp Decrease In Ethereum’s Market Dominance
Apart from Ethereum’s price and address, the market dominance of the crypto asset has also been affected. Glassnode highlighted that the cryptocurrency has witnessed a sharp drop in its market dominance. As it is with Bitcoin, all crypto investors that bought ETH last year and still holding it are now at a loss. Glassnode stated that the majority of this loss was driven by a large-scale development in the DeFi ecosystem.
The dominance of Ethereum in the market started declining at the November 2021 all-time-high level. Also, the first five months of 2022 saw record highs for institutional outflows for Ethereum investment products. Ethereum is now seen as one of the worst-hit tokens amidst the recent crypto market crash. But the cryptocurrency has shown a slight recovery over the past week. Following a huge correction during the first three weeks of the month, ETH stabilized slightly above the price level of $1,000 in the past few days. But the digital asset surged by more than 20% in the last few days, trading at $1,200 at the time of writing.