Recent geopolitical events have led to a significant decrease in activity on the Ethereum network. According to Artemis, the number of active addresses has fallen by 26%, and transaction counts have decreased by 14%.
Decline in Active Addresses and Its Consequences
The drop in active addresses indicates a decrease in user and developer engagement in the Ethereum ecosystem. Fewer wallets are initiating transactions, deploying smart contracts, or interacting with decentralized applications. This reduction in activity may signal broader slowdowns in blockchain operations, raising concerns about sustained usage levels amidst geopolitical risks.
Decrease in Transaction Volume and DeFi Liquidity
The total number of transactions has also dropped by 14%, compounding concerns about network health, as fewer operations result in lower fee revenue and diminished economic activity on the platform. The total value locked in DeFi has mirrored this decline, falling by 10% to $57 billion as users withdraw funds or avoid new investments due to rising uncertainty.
ETH Price Increase and Potential Resistance Levels
Despite recent weaknesses, ETH has surged by 8% to trade at $2,418, accompanied by a 7% increase in daily trading volume to $26 billion. Technical analysis suggests a potential resistance at $2,424, and breaking this level may lead to a target of $2,569, provided that consistent demand and market stability are maintained.
The decline in Ethereum network activity due to global tensions raises concerns. However, the increase in ETH price and trading volume could signal a recovery in investor interest.
