Lưu trữ cho từ khóa: DEX

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Injective price forms ‘lower highs across the board,’ says analyst

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Injective, the popular Cosmos-based blockchain for decentralized finance, continued retreating amid concerns about its ecosystem.

Injective (INJ) token retreated to $16.90 on Sep. 3, its lowest point since Aug. 8. It has dropped by over 67% from its highest point this year, erasing most of the gains it made in 2023. Its valuation has dropped from over $4.8 billion in March to $1.65 billion.

Ecosystem challenges remain

Injective’s price action has coincided with the sell-off of most altcoins as the crypto fear and greed index remained at the neutral point of 47. 

This decline has occurred despite a significant increase in the network’s on-chain transactions. According to its website, Injective has handled over 918 million transactions since its launch.

However, concerns persist about its ecosystem in relation to its valuation. Data from DeFi Llama shows that its DEX protocols handled $43.7 million in the last seven days, making it the 23rd largest chain in the industry, lagging behind platforms like Osmosis, Mantle, and Blast.

Injective’s DEX volume has been in steady decline after peaking at $611 million in March this year, indicating that its DEX ecosystem is not experiencing growth.

Injective DEX volume | Source: DeFi Llama

The total value locked in the Injective ecosystem has retreated to $46.5 million, making it the 51st largest chain. This TVL has also been decreasing after peaking at $72 million earlier this year. Additionally, the volume of stablecoins in its ecosystem has dropped to $22.6 million.

Injective’s performance in the DeFi industry is notable because its goal is to become the blockchain for the financial services industry.

Injective token has also retreated as its staking inflows have declined. Data shows that the network has experienced outflows in the past two days, while the staking yield has retreated to 10.4% from last month’s high of 18.7%.

Trader cautions on Injective

Injective price chart | Source: TradingView

INJ token has pulled back after reaching a high of $52.96 in March. Recently, it has formed a series of lower highs and lower lows, indicating that bears are in control. In a note, Altcoin Sherpa, a trader with over 222,000 X followers, warned that the token remains at risk of further downside.

Injective has also remained below the 50-day moving average, while the accumulation/distribution indicator has continued to decline, pointing to increased distribution.

Its volume has also continued to fall, suggesting more downside. This sell-off will be confirmed if it drops below the descending trendline that connects the lowest swings since April 12.

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Ethereum leads Solana, Arbitrum: DEX volume falls in August

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The volume of cryptocurrencies traded in decentralized exchanges dropped in August.

According to DeFi Llama, DEX platforms handled cryptocurrency worth over $181 billion in August, down from $198 billion in July. 

The monthly volume of activity on DEX platforms peaked in March when they handled over $260 billion as most cryptocurrencies jumped. 

Ethereum (ETH) was the most active chain for DEX platforms in August, handling over $52.5 billion. Solana (SOL) and Arbitrum (ARB) followed, with DEX platforms processing tokens worth $42.5 billion and $22.3 billion, respectively.

DEX monthly volume | Source: DeFi Llama

Tron (TRX) was the most improved chain in the DEX platforms, helped by the recently launched SunPump meme coin generator. SUN, the biggest DEX platform in its ecosystem, handled $3.2 billion worth of coins. 

Uniswap was the most active DEX platform in August followed by Solana’s Raydium and BNB Chain’s PancakeSwap. 

Solana’s DEX volume dropped because of the performance of meme coins in the ecosystem like Bonk, Book of Meme, and Dogwifhat. Bonk has dropped by over 64% from its highest point this year while Dogwifhat and Book of Meme have slipped by more than 70% from the year-to-date high.

Binance maintained its lead among CEX exchanges

Meanwhile, Centralized Exchanges had a better performance in August. Data shows that these exchanges handled $1.2 trillion during the month, higher than the $1.1 trillion they processed in the previous month. Like DEX platforms, CEX exchanges’ volume peaked at $2.48 trillion in March as Bitcoin and other altcoins soared. 

CEX exchanges monthly volume in 2024 | Source: The Block

Binance maintained its lead, handling over $448 billion followed by Bybit, Crypto.com, Huobi, and Coinbase. 

Additional data shows that the open interest of cryptocurrencies in the futures market fell during the month. Bitcoin’s futures interest stood at $30 billion on Aug. 31, down from the monthly high of $37 billion.

Cryptocurrencies had another difficult month in August. Most of them initially dropped on Aug. 5 as the fear of the unwinding of the Japanese yen carry trade pushed most assets downwards.

While most coins bounced back from their monthly lows, they remained significantly below their highest levels this year.

Bitcoin remains 18% below the year-to-date high while Ethereum has dropped by almost 40% below its March highs. 

As we wrote on Friday, some analysts cite the underperformance to the falling liquidity in the crypto market and the rising fear that some governments will start selling their coins.

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Polygon price retreats as NFT sales, DEX volume rises

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Polygon retreated for the first time in 10 days, even after seeing encouraging metrics on its non-fungible token and decentralized finance ecosystem.

DEX volume and NFT sales rise

Polygon (MATIC) retreated to a low of $0.53, down from last week’s high of $0.582. It remains 60% higher than its lowest point this month as the countdown to MATIC’s transition to POL on Sept. 4 continues.

Polygon’s pullback happened after the developers regained control of its X account after a recent hacking incident.

Third-party data shows that Polygon’s ecosystem is doing well. According to CryptoSlam, weekly NFT sales rose by 111% to over $12.7 million. The number of buyers jumped by 35% to 88,000 while sellers rose to 25,000. 

Polygon handled 356,700 transactions, while the wash volume fell by 12% to $9.2 million. It was the fourth-biggest player in the NFT market after Ethereum (ETH), Solana (SOL), and Bitcoin (BTC).

Polygon has also done well in the DEX industry, where its volume rose by 7.32% to $770 million. It was the seventh-biggest player after the likes of Ethereum, Solana, and Tron. Some of the most active DEX networks in the ecosystem were Uniswap, Quickswap, Woofi, Dodo, and Retro.

Additionally, Polygon’s total value locked in the DeFi ecosystem has risen by over 10% in the last seven days to $951 million. 

Still, the network is seeing substantial competition in the layer-2 industry from the likes of Arbitrum (ARB) and Base, which have accumulated over $2.82 billion and $1.6 billion in assets. Arbitrum has also become one of the most active DEX networks, handling over $3.7 billion in the last seven days. 

The next development in Polygon’s ecosystem will be the transition from MATIC to POL, which will introduce new capabilities in the network. It will be used to provide services to any chain in the Polygon network, including AggLayer.

It will also be the native gas and staking token for Polygon’s proof-of-stake network. Polygon could see more volatility towards the POL launch. 

Polygon remains above the 50EMA

Polygon price chart | Source: TradingView

Technically, Polygon has crossed the 50-day moving average and is hovering at the 23.6% Fibonacci Retracement point.

Previously, it failed to move above that retracement point in July this year.

The token has since formed a bearish engulfing candlestick pattern, pointing to a potential pullback, possibly to the 50 EMA level at $0.493.

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Binance Coin rallies as BSC Chain DEX volume surpasses Solana

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Binance Coin’s price rally gained momentum as futures open interest reached its highest level since July 7, coupled with an increase in its Decentralized Exchange (DEX) volume.

The Binance Coin (BNB) token rose for three consecutive days, hitting a high of $583.90, its peak since July 31. This price movement coincided with a sharp rise in futures open interest. According to CoinGlass, open interest climbed to over $607 million, with significant contributions from Binance, Bybit, and BingX.

The rally also occurred alongside a surge in volume on the BNB Smart Chain. Data from DeFi Llama shows that 24-hour volume increased by 15% on Aug. 22, reaching $921 million. This growth allowed BSC to surpass Solana (SOL), whose volume dropped by 21% to $692 million.

Most of BSC’s volume growth came from DEX platforms like PancakeSwap, Dodo, Woofi, and Wombat Exchange. However, this was offset by a decrease in volume from other DEX dApps like Thena, BabySwap, and MDEX.

Still, Solana remains the second-largest DEX chain in the industry after Ethereum (ETH). Over the past seven days, Solana recorded a volume of $6.3 billion, compared to BSC’s $4.2 billion.

Solana also outperforms BSC in the Non-Fungible Token sector, with $79 million in sales over the last 30 days, while Binance processed $15 million.

Meanwhile, the number of unique active wallets in BNB Smart Chain rose by 3% on Aug. 22 to 414,000. Transactions rose by 8% to 725,000 while the number of dApps in the ecosystem rose to 5,455.

Another potential catalyst for BNB price could be the anticipated release of Changpeng Zhao from prison in September, which might attract inflows from day traders due to the surrounding hype.

Binance Coin to find resistance at $603

Binance Coin price | Chart by TradingView

The BNB token has seen a strong rally after bottoming at $400 on Aug. 5. It has turned the resistance at the 50-day moving average into support, while the Relative Strength Index (RSI) has moved above 50, indicating bullish momentum.

To sustain this rally, bulls will need to push the price above the critical resistance level at $603.63, which corresponds to the highest swing on July 22 and the 23.6% Fibonacci Retracement level. A break above this level could signal further upside, potentially targeting the year-to-date high of $723.

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VELO price prediction: big moves expected as DEX volumes drop

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Velodrome Finance’s token consolidation continued, reflecting the broader price action seen in Bitcoin and other altcoins.

Velodrome (VELO) was trading at $0.065, a level it has maintained since Aug. 6, giving it a market cap of over $90 million. At its peak in March, Velodrome had a valuation of over $200 million.

Velodrome, the third-largest decentralized exchange on the Optimism (OP) network, has faced significant challenges in recent months. Data shows that the total value locked in its ecosystem has dropped from $322 million in April 2023 to $85 million. Additionlly, according to DeFi Llama, its total volume in the past seven days has decreased by over 34% to $197 million.

This decline in volume aligns with trends seen across other DEX protocols, which have experienced reduced activity following the crypto Black Monday on Aug. 5. The total volume handled by DEX protocols in August was $111 billion, down from $190 billion in July.

Typically, DEX and centralized platforms see increased volume when cryptocurrencies are rising, as rallies attract more investors and traders. For instance, Coinbase’s revenue surged by 72% in Q1, reaching $1.6 billion as Bitcoin hit record highs.

VELO price forecast

VELO price chart | Source: TradingView

The price of Velodrome Finance’s token has seen a sharp decline in recent months. After peaking at $0.3945 in March, it has dropped by over 83% to $0.065, meaning that a $10,000 investment would now be worth just $1,647.

VELO found strong support at $0.048, where it formed a double-bottom chart pattern. The token has remained below the 50-day moving average indicator.

It has also moved below the descending trendline that connects the highest swings since April 21. As a result, it has formed a descending triangle pattern, which often leads to a bearish breakout. This triangle is nearing its confluence, suggesting that significant price movements could be imminent.

The accumulation/distribution and smart money index indicators have also pointed downward. Additionally, the average true range (ATR), a popular measure of volatility, has retreated to its February lows.

Therefore, the path of least resistance for the token appears to be downward, with the next level to watch being $0.048. A break below this level could lead to further downside. An alternative scenario could see the token bounce back if Bitcoin (BTC) bounces back. 

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Solana forms bullish patterns as DEX volume, open interest slip

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Solana price has been stuck in a deep bear market as the volume in its decentralized exchanges and futures open interest dipped.

Solana (SOL) has risen for two consecutive weeks and was up by over 33% from its lowest point in August. Still, it remains in a bear market after falling by over 30% from the year-to-date high. 

Solana’s DEX volume retreats

Its price action has mirrored that of other cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), which are all in a bear market. 

Solana’s sell-off has happened as the volume in its DEX platforms has fallen in the past few weeks. Data by DeFi Llama shows that its DEX volume dropped by over 45% in the past seven days. In this period, it has handled transactions worth $7.12 billion while Ethereum has processed $8.9 billion.

Solana’s DEX volume has retreated because of the ongoing meme coin sell-off. Top Solana memes like Dogwifhat, Bonk, Popcat, and Book of Meme have all tumbled by over 50% in the past few months.

Solana has become the most popular chain for creating meme coins, due to fast speeds and low transaction costs. The launch of Pump.fun, a meme coin generator, has made it easier for people to launch Solana meme tokens. 

Data shows that these tokens have a combined market cap of over $425 million, with Michi, Daddy Tate, Mother Iggy, and Billy being the largest. 

Meanwhile, Solana’s open interest in the futures market has stalled.

According to CoinGlass, futures open interest on Aug. 18 stood at almost $2 billion, the same level it has been in the past five days. The interest is much lower than the July 30 peak of $3.08 billion. 

Solana futures open interest | Source: CoinGlass

The waning open interest is likely because of the significant liquidations that happened earlier this month as cryptocurrencies slumped.

Solana’s bulls suffered liquidations worth over $39 million while shorts liquidations totalled $21 million on Aug. 8. 

Solana has bullish technicals

Solana price chart| Source: TradingView

On the positive side, Solana has found strong support at the 50-weekly moving average, where it failed to move below earlier this month. 

The coin has also formed a doji pattern, which is characterized by a small body and long upper and lower shadows. It is one of the most popular reversal signs in the market. 

Additionally, Solana has formed a cup and handle pattern, a sign of a bullish continuation. Therefore, the coin may continue a bullish trend in the coming weeks as buyers target the key resistance of $180.

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Hybrid crypto exchanges will inevitably reign in the market | Opinion

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As we start to see renewed interest in crypto—with prices hovering near their all-time highs and prominent people and institutions discussing the industry—building a robust crypto exchange is essential.

Crypto traders’ standards for an exchange are higher than ever. They are looking for a sleek user experience, architecture that supports high throughput and low latency, and top-notch security. The latter is especially important given the industry is still recovering from the implosion of FTX and the domino effect it had on other businesses in the space. 

While centralized exchanges excel at building beautiful user interfaces and intuitive user experiences, they operate at speed by custodying users’ funds for them. As the industry has seen many times throughout crypto’s history, funds that the users themselves don’t control can be mismanaged by fraudulent actors. Additionally, CEXs possess the authority to limit access to accounts, such as freezing funds or halting withdrawals. As the crypto adage goes: Not your keys, not your coins. 

Decentralized exchanges, on the other hand, grant users complete control over their funds with self-custody. They leverage blockchain technology and smart contracts to execute trustless trade and settlement. However, this architecture can be clunky and complex for users to navigate. It comes with trade-offs in throughput and latency, the absence of advanced trading features (like advanced order types and conditions), and can also deal out significant fees to pay gas for settlement on a blockchain. 

A new crop of crypto entrepreneurs is thinking about exchange architecture differently. They are looking to combine aspects of a centralized and decentralized exchange with building on the best of both worlds. Enter hybrid crypto exchange. 

A better trading engine for a better crypto trader

CEXs from the last cycle, including Coinbase and Binance, built their businesses by copying the UI of broker platforms and mimicking the mechanics of broker platforms and the UI of fintech apps. They focused on user-friendly UI, robust mobile apps, competitive fees, and an extensive selection of coins and tokens. 

The centralized trading infrastructure offers high throughput and low latency, which is what the world demands for crypto trading. Going deeper, high throughput and low latency enable better liquidity, as market makers can reprice quicker. They also allow for more efficient margin usage, as a centralized risk engine enables the exchange to offer higher leverage. Centralization enables advanced trading features and logic, such as advanced order types and conditions. 

Aside from performance, it allows exchanges to have more control over compliance. CEXs control what customers have access to their platform and can manage the access of those users by implementing robust blockchain analysis, fincrime, and compliance programs. In the wake of FTX, lawmakers and enforcement agencies have been clamping down on the industry, dishing out huge fees and even jail time to businesses and entrepreneurs that are found to be skirting regulations. 

So, to sum up, that’s why the hybrid exchange model inherits the bright side of centralization. The trading architecture is kept centralized to a large extent. UX is also inherited from CEX because DEXs simply lack features, such as simple account creation, which eliminates the need for users to already have a wallet before interacting with the exchange. DEXes are also limited in their on- and off-ramps, fee abstraction, and advanced trading analytics. Especially as another batch of crypto traders enters the space during what appears to be the beginning of a bull run, a powerful feature set on top of a polished user experience is critical. 

It all sounds like a flawless victory for centralization so far. The question is, what do hybrid exchanges inherit from decentralized ones? The answer is simple: The essential feature that enables trust in crypto trading. And centralization has a dark side.  

Give users the keys

Hybrid exchanges still pull from DEX concepts by utilizing blockchain technology to secure funds. Users self-custody their funds, and trades are settled on the blockchain at various periods. Another crucial trait is the on-chain validation of the trading logic, which will prevent operator fraud. As such, trust is provable, and transparency is immutable. 

Operator fraud is one of the most significant risks in crypto. CEX’s control over funds is beneficial for compliance reasons; however, it grants the authority to limit access to accounts, such as freezing funds or halting withdrawals. The collapse of FTX certainly heightened concerns over an operator’s access to user funds. Yet, FTX wasn’t the first or only exchange to mishandle user funds and call into question the CEX model. One of the first-ever crypto exchanges, MtGox, completely shut down and filed for bankruptcy in early 2014 because of an undetected theft over many years that drained the exchange of more than 850,000 Bitcoin (BTC). In 2018, Canadian exchange QuadrigaCX went dark and was later revealed to be a Ponzi scheme, causing the loss of roughly $190 million in user funds. 

These continued instances highlight the importance of self-custody and trustless on-chain settlement, whereby users hold the keys to their own coins instead of trusting a centralized entity that isn’t fully transparent to retain their keys. 

Scaling tech for cutting costs

In the derivatives market, traders often transact in large volumes, which can accrue significant fees. There is no feeless trading. CEXs and DEXs charge fees for trading, but DEX users have an additional cost to settle all their trades on a blockchain. These fees fluctuate depending on the overall usage of the blockchain at any given period. Earlier this year, in March, Ethereum transaction costs skyrocketed to nearly a two-year high due to increased speculation in meme tokens.

The hybrid exchange approach simplifies the fee structure because trading is centralized and relies on layer-2 technology to boost scalability while keeping transaction fees low. Rollups are one such scalability solution that processes transactions on a separate network before bundling the transaction data into batches to submit and settle to the main chain. 

Now’s the time to go hybrid

Blending features from centralized and decentralized exchange architecture is an obvious choice in a market that’s becoming more mature and competitive. 

The speed, usability, and design of CEX help users of all levels of technical know-how trade crypto easily. And the security provided by implementing aspects of DEX will create an ecosystem of trust and reliability that gives users peace of mind. 

The hybrid crypto exchange is poised to be the winning business model in the next bull run, highlighting that it’s not always about reinventing the wheel as much as it’s about creatively putting the pieces together. It’s not a one-size-fits-all industry; it won’t have a one-size-fits-all solution.

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Here’s why Solana-based Jupiter Exchange sees nearly half of transactions fail in the last month

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Jupiter DEX is facing increasing scrutiny as users have observed a nearly 50% transaction failure rate, prompting concerns and questions about the platform’s performance. Many are looking for explanations and wondering what measures are being taken to address this issue. In this article, the situation will be explored in detail, examining the factors contributing to the high failure rate and what actions are being taken to improve the user experience on the platform.

Source: Hacken

High failure rate: causes and concerns

Over the last 30 days, excluding the missing data from August 2 and 3, the average failure rate on Jupiter stands at 42.89%. This has led to an increasing number of users questioning the underlying causes of these failures and seeking clarity on what measures are being taken to improve the platform’s performance.

A particular point of frustration for many users is that they are still charged fees for failed transactions. While this might seem unfair at first glance, it is an inherent aspect of blockchain technology. Each transaction, successful or not, uses network resources like computational power and block space. Even if a transaction fails, the validator still processes it until an issue causes it to error out. Since the network is still utilized to process the request, the fee compensates for those computing resources.

Increased slippage tolerance is a risky solution

To avoid repeated charges, users often increase their slippage tolerance to ensure their transactions go through. The increase makes the transaction more likely to succeed because it gives the network permission to complete the swap even if the price changes slightly from the original quote.

However, increasing slippage opens the door to another risk: front-running by bots. These bots can detect transactions with high slippage and execute their trades just before the user’s transaction, buying assets at the lower price and selling them back at the higher price set by the user’s slippage. This results in users getting less favorable rates on their swaps, effectively costing them more than just the transaction fees.

How front-running works on smart contract blockchain networks

The diagram from Hacken shows how front-running works on Ethereum, but the concept also applies to Solana and other smart contract blockchains.

  • Step 1: The user initiates a transaction on the network, intending to interact with a smart contract.
  • Step 2: A front-runner (usually a bot) monitors the network and detects the user’s transaction.
  • Step 3: The front-runner creates a new transaction with a higher gas price. The higher gas price incentivizes validators to prioritize processing the front-runner’s transaction over the user’s original transaction.
  • Step 4: The blockchain network prioritizes transactions based on the gas price. Since the front-runner’s transaction offers a higher gas price than the user’s, it gets processed first.
  • Step 5: The user’s transaction gets less favorable terms or even fails, which leads to financial losses or missed opportunities.

In Jupiter’s own words:

Majority of these failed transactions come from arbitrage bots that route using the program when an arb opportunity is near, hoping to land a transaction when the opportunity takes place — this leads to the higher failure rate. For our users on Jupiter UI, the transaction success rates are actually over 90%!

Nonetheless, front-running heavily depends on the trustworthiness of the RPC (Remote Procedure Call) providers used to interact with the network. The RPC provider is an intermediary between the user and the blockchain and transmits transaction data to the network. If an RPC provider is not reputable, it could potentially enable or even participate in front-running by sharing transaction details with bots or manipulating the order in which transactions are submitted. Reputable RPC providers, on the other hand, are expected to uphold ethical standards and ensure that they do not exploit users or allow such behavior to occur.

Another reason for the high rate of failed transactions is the ongoing memecoin frenzy, where tens of thousands of new tokens are being created every day. Many of these memecoins lack sufficient liquidity, meaning there aren’t enough tokens available in the market to complete trades. When users attempt to buy or sell these low-liquidity tokens, the transactions can fail because the trade can’t be fulfilled.

Throughput limitations and delays in order processing

While the memecoin surge contributes to the failure rate, Jupiter’s automated slippage and gas calculation features also play a role. These features, which generally work well in stable market conditions, struggle during periods of high volatility. Additionally, the platform is grappling with issues related to its free tier quote API, which has been exploited by users bypassing rate limits by spinning up new machines. This exploitation has resulted in increased operational costs and the risk of service degradation for legitimate users.

Furthermore, Jupiter’s throughput is currently insufficient, particularly as it is handling an overwhelming volume of orders, causing its retry logic to slow down to more than 25 seconds.

Conclusion

Jupiter DEX is facing some tough challenges, including a high rate of transaction failures, front-running risks, and infrastructure bottlenecks. These aren’t just minor issues—they directly affect user trust and the platform’s ability to perform well. The team is working hard to fix these problems, but there’s a key question that remains: Can Jupiter not only solve these immediate issues but also keep up with the growing demands of the DeFi space?

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Altcoin

Solana flips Ethereum DEX volume with $55b

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Solana has surpassed Ethereum for monthly decentralized exchange (DEX) trading volume for the first time in crypto history.

Solana (SOL) DEX volume hit $55.8 billion in July, outpacing on-chain trading activity on Ethereum (ETH) between July 1 and July 31, per DefiLlama. 

Ethereum, the largest chain for decentralized finance, recorded $53.8 billion in the same period. Layer-2 networks like Arbitrum and Base and L1 blockchain Binance Smart Chain comprised the most volume after Solana and Ethereum. 

Monthly DEX volume on Aug. 1 | Source: DefiLlama

What’s driving Solana’s volume?

Solana’s landmark moment in surpassing Ethereum occurred under different circumstances for both networks.

Memecoins gained popularity on Solana’s chain last year, with projects like Dogwifhat (WIF) and Bonk (BONK) storming on-chain markets. Many speculative investors became overnight millionaires by betting on such tokens, which traded with billion-dollar market caps as of August 1.

Celebrities have also entered Solana, quickly bringing new tokens to market using tools like Pump.fun and Moonshot. Although most of these coins failed, the presence of public figures added momentum to the memecoin meta.

Wealth managers like VanEck applied to list spot Solana ETF shares with the U.S. Securities and Exchange Commission. However, BlackRock’s head of digital assets, Robert Mitchnick, said a list of basket crypto ETFs beyond Bitcoin (BTC) and Ethereum seemed unlikely.

Ethereum’s defi role and institutional promise

Conversely, Ethereum remains the go-to application layer for building decentralized applications. The largest dapps, such as Aave and Uniswap, were originally native to Ethereum.

Ethereum gained renewed interest following a technological upgrade that significantly reduced fees, making trading and swapping on Ethereum affordable again. The upgrade, called Dencun, was quickly followed by institutional demand for ETH on Wall Street. Issuers like BlackRock, Bitwise, Fidelity, and Grayscale received authorization from the SEC to list spot ETH exchange-traded fund shares.

Spot Ethereum ETFs have traded for about six days, with Grayscale outflows weighing heavily on the new offering. According to Nansen, $750 million exited products in the first four out of five trading days.

Debates abound about what the ETFs mean for Ether’s future price. One perspective suggests that supply dormancy caused by ETF buying will propel on-chain staking yields, while some argue against the development being regarded as an industry boon.

Regardless, on-chain data solidifies Ethereum as a DeFi market leader. Glassnode reported that daily active addresses on Ethereum and its L2s increased by 127% since the start of the year.

Daily active Ethereum address data | Source: Glassnode

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