Ethereum shed 13% from March 8 to March 11 amid global economic uncertainties and shifts in financial markets.
ETH Price Drop and Its Impact
Concerns increased as the US retaliated against Canada's electricity surcharge, spurring fears of an economic downturn. This pushed Ether to $1,744, its lowest level since October 2023. The major drivers included macro events and reduced speculator activity in derivative markets.
Growth of Ethereum Layer-2 Network
Despite recent hurdles, Ethereum’s infrastructure continues to advance. Layer-2 solutions are witnessing significant activity increases. Transaction costs remain low, contributing to network efficiency. Although validator earnings have decreased, aggregate layer-2 operations have tripled.
Ethereum Regains DEX Dominance
Ethereum remains a favorite among institutional investors, solidifying its place in financial markets. Smart contract deposits have surged, marking a recovery in trader confidence and reaching new highs since July 2022.
Although Ethereum faced a significant decline, the growth of layer-2 and shifts in key positions in derivatives and DEX markets highlight recovery potential.
