Renowned analyst Ali recently expressed concerns over the Ethereum network’s current state, suggesting a potential bearish trend. In a tweet, he asserts that the crux of the matter lies in the Ethereum network fundamentals, which Ali contends are showing signs of lagging behind.
The focal point of Ali’s argument is the comparison between the monthly average of active Ethereum addresses and the yearly average. This comparison reveals that the monthly average is trailing behind the annual average, implying a lack of robust on-chain activity. According to Ali, this discrepancy serves as a classic indicator of a network’s weakened health and underutilization.
On the other side, blockchain data analytics firm Intotheblock has taken a different stance. Through their Twitter post, the company revealed a striking statistic: transaction numbers on the ETH network and leading L2s have surged to a level roughly three times higher than the peak witnessed during the bull market.
Moreover, it’s worth noting that despite this substantial growth in Layer 2 transactions, Ethereum’s mainnet transactions have maintained stability, hovering around the 1 million per day mark. Ali chimed in on this aspect as well. Even with the evident growth in transaction numbers, Ali emphasized that the overall network activity still appears to be trailing behind.
This perspective paints a nuanced picture of the ETH ecosystem, suggesting that while there are promising indicators of growth and innovation through Layer 2 solutions, there may still be underlying challenges that need to be addressed to propel the network toward a more robust state of health and utilization.
Ethereum Price Rebounds Amidst Optimism for Future Growth
Following a sudden decline on August 18th, ETH’s price demonstrated a modest recovery. The latest data indicates that the price has risen to $1,675.70. The cryptocurrency has exhibited a 0.46% increase in value over the past 24 hours, while its 24-hour trading volume has reached $4 billion.
Despite the recent market fluctuations, the Ethereum community remains optimistic about the potential future trajectory of the cryptocurrency’s price. Crypto Rover, a prominent Crypto YouTuber boasting an audience of 100,000 subscribers, shared their insights.
According to Crypto Rover, there’s a prevailing sentiment within the community that Ethereum could attain a value of $10,000 or even surpass that mark during the forthcoming bull run.
Related Reading | Ethereum Layer 2s Surge: Transaction Numbers Reach 3x Bull Market Peak