Just like Bitcoin, Ethereum witnessed a sharp decrease in value in the past few months. The world’s second most valuable crypto asset touched a low of almost $850 during the recent market sell-off. As a result of the crypto winter, the total number of active Ethereum addresses has now reached 28,149, which is the lowest level since January 2021.

The overall number of dormant ETH addresses has increased during the same period. The supply of ETH spent more than 5 years ago has reached an all-time high of 10.12 million. Additionally, data from Glassnode shows that the ETH network witnessed a sharp decline in the number of transactions.

“Number of ETH transactions (7d MA) just reached a 20-month low of 40,691.060. The previous 20-month low of 40,691.893 was observed on 10 June 2022,” Glassnode noted in a recent Tweet.

After a massive correction during the first three weeks of June, ETH stabilized above the price level of $1,000 in the past few days. In the last six days, Ethereum climbed by more than 20%. The digital asset is now trading near $1,200.

Ethereum Network

In its recent crypto market report, Glassnode highlighted a sharp dip in ETH’s market dominance.

“Like Bitcoin, all investors who purchased Ethereum in 2021-22 are now currently all holding an unrealized loss. A great proportion of this downside was driven by a large scale deleveraging in the DeFi ecosystem,” Glassnode noted.

“Ethereum dominance has been in notable decline since the Nov 2021 ATH and is close to the inflection point which has historically preceded a longer-term period of Bitcoin out-performance. This highlights the aggregate state of general risk-off sentiment in the market, where ETH under-performs BTC and both tend to under-perform the US Dollar,” the report added.

Institutional outflows from ETH investment products reached record highs during the first five months of 2022.

This article was written by Bilal Jafar at www.financemagnates.com.