Interactions with Ethereum DApps are soaring, but ETH price has failed to react.
Ether (ETH) has gained 7.5% since its drop to $2,396 on Aug. 27, but the 22% decline over the past 30 days indicates that investors remain uneasy with their positions. While Ethereum’s network activity is increasing, Ether’s price has yet to show signs of reclaiming the $3,800 levels seen in early June.
The situation is even more concerning given that the altcoin market capitalization has decreased by 13% over the past 30 days, meaning Ether has underperformed its peers. This movement can partly be attributed to the overblown expectations surrounding the anticipated launch of a spot exchange-traded fund (ETF) in the US on July 24. However, there is more to the story, as Ether was trading at $3,200 as recently as April 24.
Ether bulls are placing their hopes on the recent drop in Ethereum’s average transaction fee, which fell below $1 for the first time in four years. Combined with the successful reliance on layer-2 solutions for projects requiring higher throughput, Ethereum’s dominance in decentralized applications (DApps) remains unchallenged.
