According to data from The Block's Data Dashboard, Ethereum's trading volume and daily network transactions have declined significantly throughout August.
Trading Volume Drops
The seven-day moving average of daily trading volume on the Ethereum network has fallen by around
55% over the past month. On July 26, the daily trading volume was approximately
$6.56 billion; today, it has dropped to about
$2.9 billion. For comparison, July’s total trading volume reached
$134.71 billion, while August’s volume currently stands at
$91.46 billion with five days remaining in the month.
Decline in Daily Transactions
Another indicator of economic activity on the Ethereum network, the seven-day moving average of daily transactions, has also reached a multi-month low. On Sunday, there were around
1.07 million transactions on Ethereum, a steady decrease from the multi-month peak of
1.32 million daily transactions recorded on March 25 of this year. So far in August, there have been
27.27 million transactions on the blockchain—a low not seen since May 2020—compared to
35.49 million transactions in July.
Analysts' Perspective on the Decline
Analysts at Coinbase view this August decline in trading volume and overall activity on Ethereum as part of a cyclical pattern, consistent with the historical summer lull. They noted that this year's drop in blockchain activity is less pronounced than in previous years, with a
7.7% decrease in ether trading volumes compared to the average
16.8% decline observed over the last five years.
Additionally, the decline in institutional interest in Ethereum has been highlighted, with one analyst pointing to the underperformance of spot Ethereum exchange-traded funds (ETFs) compared to their bitcoin counterparts. Reflecting the overall decline in trading activity and institutional interest, the price of ether decreased by
0.6% to
$2,734.
Read more at
The Block.
