By Shelly Melancon (Switzerland)
The past eight months were one of the darkest periods in the history of the largest altcoin. Ethereum has dropped over 80% of its value as the crypto winter bites harder.
However, the second largest cryptocurrency by market capitalization has now enjoyed a modest recovery over the past few days.
Moreover, the profit supply of the entire Ethereum ecosystem has increased by 7.8%. A significant recovery has been given the current crypto market situation.
A Surge in ETH Profit Supply
According to the data released by Glassnode, the rise in the profit supply of Ethereum’s native token reached 56% on Monday. These are the highest numbers attained by the network since last month.
Despite the positive performance, the number is nowhere near the November 2021 performance. The previous year saw over 90% of ETH supply in profit.
Glassnode added that last month, nearly 7.8% of the supply of Ethereum in circulation was transacted on-chains. As a result, the total supply of ETH in profit has jumped to 56%. And this is coming after hitting a low of 41% before the current price rally.
Interestingly, whale activities on the Ethereum network are beginning to gain traction. Just recently, on the 19th of July, a crypto wallet transferred 100,000 ETH to an anonymous address. The ETH tokens are worth more than $150 million.
ETH’s Current Price Action
The recent market downtrend has undoubtedly pushed most top cryptocurrencies to the brink. Ethereum is no exception, as the token performed worse than any other digital asset among the top five.
Additionally, the negative sentiment in the retail market has left ETH vulnerable as traders avoid taking a plunge in the asset. Worse is the sharp drop in institutional investors’ interest in Ethereum, which has contributed to its negative market performance.
Another discouraging index is the year-to-date outflows. Ethereum investment products recorded a whopping $446 million in outflows. In contrast to the modest $14 million inflows in Bitcoin investment products, Ethereum has performed woefully.
However, all is not gloom and doom for the king of altcoins, as Ethereum made a stunning comeback over the past week. Its value has been up by nearly 40% in the past seven days, the highest among the top 10 tokens.
For the first time in a month, Ethereum’s price jumped above $1,500 and has a market cap of over $184 billion.
Like Bitcoin, Ethereum has been hovering between the threshold of low and high prices caused by the market bloodbath. Since the collapse of the Terra LUNA ecosystem, the broader crypto market has been entangled in a storm.
The persistence of the market correction has made many skeptics point to the total collapse of the digital asset space. However, despite the industry’s challenges, it has gained a significant part of its value.
Like others, Ethereum is making a steady comeback to its previous position, and the coming weeks will reveal how far it has to go.
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