Ethereum’s Decentralized Finance (DeFi) Ecosystem is on the Rise, But Why is ETH Still Bearish?
Ethereum’s blockchain network has been on a fundamental uptrend with more Decentralized Finance (DeFi) launching within its ecosystem. The network is now hitting record highs of 2.7 million ETH; this activity is however not reflecting on the price of its native coin. The ETH altcoin is currently down by 1.75% in the past 24 hours trading at $146.20 as per coinmarketcap stats.
The ETH Network Fundamental Growth
Vitalik’s blockchain has survived the times despite criticisms from other communities like Bitcoin and DApp oriented networks. The Ethereum network has grown to dominate the DApp arena and ultimately secured a number 2 market cap position. Analysis within the blockchain space shows that the ETH network is pretty healthy based on its activity and hash rate.
A recent tweet by into the block highlighted the ETH network's health status based on the past day. According to the stats, ETH blockchain had over 244k active users while the number of newly created addresses stood at 70.7k. It is also notable that only 23.9k addresses had left the network in a span of 24 hours.
— DeFi Pulse 🍇 (@defipulse) December 2, 2019
Last month’s Ethereum performance summary further highlights the general improvement within the blockchain’s ecosystem. The use of DApps had significantly grown with ETH miners hitting over 9 million blocks. In addition, over 15 million ETH addresses had a positive balance. November also marked the launch of a multi collateral DAI by MAKERDAO; this DApp now accepts both ETH and Basic Attention Token (BAT) for collateralization.
ETH Still Plunging?
Despite the DeFi's success, the general outlook of the crypto market has not spared ETH's price. It’s been struggling to maintain support at $150 but the bears pulled it below this level as it slid further down this quarter. However, the last crypto winter was worse than the ongoing downtrend; ETH was trading at around $90 as the peak of 2018’s bear market. The price uncertainty is an inevitable consequence of speculation but the ETH fundamental growth and gradual roadmap realization still stands out.