Crypto analytics firm Santiment says that most speculators are moving on from Ethereum (ETH) in search of better alternatives that offer higher return on investment.
The blockchain industry data giant says that exchanges are seeing an influx of Ethereum, suggesting that people are selling their holdings in response to the recent marketwide crypto dip and other world events.
“Not the healthiest look around if we want to continue an uptrend, but most of the price action recently [has] been rather dependent on macro events (Evergrande meltdown, SEC’s outlook on crypto, etc).”
ETH had dropped from the $3,000 level to around $2,600, before climbing back to $3,102 at time of writing, according to Coingecko.
Santiment says that even before the price of ETH plummeted, network growth has already been stagnant for several months.
The firm says that this behavior is due to growth in other Layer-1 projects like Avalanche (AVAX), Fantom (FTM), and Cosmos (ATOM), as well as declining speculation within the non-fungible token (NFT) market.
“If there are better speculative opportunities that are cheaper and yield higher ROI, people will be there. And for now, ETH isn’t the place for that.
ETH continues to struggle as most speculators have moved on to other L1s for better ROI, eventually leaving it with a stagnant network growth.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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