It will increase activity in DEXs to push Ethereum to the top

  • Activity on the Ethereum DEX has increased in recent years.
  • Additionally, the number of validators has increased on the Ethereum network.

According to a tweet by Delphi Digital on December 29, DEX activity on Ethereum [ETH] A significant increase over the past year. One reason for this may be the mistrust towards CEXs caused by FTX breakdown.

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peak activity

From January 2020 to November 2022, the volume of DEX on Ethereum grew by 402.4%. Although growth has slowed in recent months, Ethereum can benefit from increased DEX activity on its network.

Source: Delphi Digital

This increased activity was joined by the interest of private investors. According to Glassnode, the number of addresses with non-zero balances has reached a record high of 91.97 million.

Along with private investors, the number of validators on the Ethereum network has increased. In the last 30 days, the number of validators has increased by 2.71%. However, revenue from the network declined over the same period, according to data from Staking Rewards.

Source: Staking Rewards

Looking at the data in the series

Along with the increasing number of validators, the number of large addresses on the Ethereum network has also increased.

However, Ethereum has not been able to generate interest from the new addresses. This was indicated by a decrease in network growth, which indicates that the number of new addresses moving Ethereum for the first time has decreased.

In addition, the speed of Ethereum decreased over the same period, indicating a decrease in the frequency with which Ethereum was transferred between addresses.

Source: feeling

While the whales remained bullish despite the decrease in activity on Ethereum, traders in the cryptocurrency market had a different view.

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According to Coinglass data, the number of short positions held against Ethereum has increased. At the time of writing, 51.07% of traders have taken short positions against ETH.

Source: Coinglass

It remains to be seen if traders prove themselves right in betting against Ethereum. At the time of writing, ETH is trading at $1,192.5 and its price is down by 0.67% in the last 24 hours, according to CoinMarketCap.

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