Key Points
- Ethereum’s price performance in 2024 exceeded Bitcoin’s, despite significant price volatility.
- Interest in Ethereum NFTs and its ecosystems has noticeably decreased.
Ethereum [ETH] experienced a roller-coaster ride in 2024, with its price undergoing considerable fluctuations.
Despite the instability, it still managed to surpass BTC in terms of performance.
Ethereum’s Performance
Data from Artemis indicates that Ethereum didn’t just outdo Bitcoin in 2024, but also outpaced tokens in other sectors like AI, Data Services, and RWA (Real World Assets).
Interestingly, the rise in Ethereum’s price over the past year was primarily driven by retail investors.
An analysis of Santiment’s data showed that addresses holding between 0.1 to 10 ETH had accumulated significant amounts of ETH in recent months.
In contrast, whale investors were seen to be offloading their holdings and showed no interest in accumulating more.
This trend could be beneficial for Ethereum in the long term since a larger number of retail investors could lead to greater decentralization of the Ethereum network.
However, large sell-offs from whales may negatively impact the short-term price movement of ETH.
Current State of Ethereum
At the time of writing, ETH was trading at $3,765.89, with a modest surge of 0.21% in the last 24 hours.
Despite this price increase, the Network Growth had seen a significant drop in recent days.
A decrease in Network Growth suggests that new addresses trading ETH had significantly reduced.
If this trend continues, it could negatively affect ETH’s price in the long term.
Moreover, the speed at which ETH was being traded also declined, indicating a decrease in overall ETH trades.
Another important factor is the overall health of the Ethereum ecosystem.
An analysis of Santiment’s data revealed that the number of Daily Active Addresses on the Ethereum network had fallen from 630,000 to 430,000 in the past few weeks.
This suggests that users were migrating to other networks and platforms.
