CryptoQuant analysts reported the largest undervaluation of Ethereum compared to Bitcoin since 2019. According to their data, such periods in the past have typically preceded phases when Ethereum demonstrated high profitability. At the same time, experts warned that unlike previous cycles, this time Ethereum's recovery may be constrained by several factors — among them high supply pressure, weak demand, and low network activity.
CryptoQuant noted that the total supply of Ethereum is once again increasing and has recently reached a new all-time high of over 120.7 million ETH. According to them, this is a clear departure from the deflationary narrative after The Merge update and a return to inflationary issuance. They also added that activity on the Ethereum network has remained stable since 2021. According to their data, metrics such as the number of transactions and active addresses are not showing sustainable growth.
Furthermore, analysts emphasized that investor interest in Ethereum is declining: the volume of assets in staking is falling, and their number in funds is decreasing. They believe this indicates a decrease in trust from both the crypto community and traditional investors.
Earlier, CryptoQuant stated that the volume of spot trading for Ethereum is decreasing, which could be a good sign.
“As Ethereum has been in a correction phase lately, a decline in volumes amid such a situation may help reduce volatility. As a result, this could also partially ease selling pressure that negatively impacts the market. This does not mean that the price has already reached the bottom, so caution is advised,” the experts explained.
At the time of writing, the asset is trading near the mark of $1950.
#BinanceSquare #Write2Earn #Binance #CryptoQuant #trading $ETH