The price of Ethereum is now declining, and a long list of issues might keep it that way for some time. On December 16, the price of ether decreased, and the pre-FOMC surge to $1,350 was completely destroyed due to words made by Jerome Powell, the Federal Reserve chair, after a 0.50% interest rate increase. The market-wide slump that caused the community costs to drop by 39.90% over the previous 30 days is followed by the sell-off in ether.
Over the course of 24 hours, decentralized finance also saw a 4.49% reduction in the overall value sealed in Ether-based smart contracts. The FTX trade crisis has prompted officials to move quickly with new bitcoin restrictions. While some inquisitors think Ether still has a number of bullish factors working in its favor that make it worthwhile to hold the asset, on-chain data depicts a bleak picture of its near-term price prospects.
Ethereum Grows Inflationary As Overall Revenue Drops
Daily fees on the Ethereum network decreased to $2.9 million from pre-FTX levels of $12.8 million approximately, which caused the price of ether to decline. To add to the fees dropping, the network’s daily active users (DAUs) decreased from a peak of 961,196 clients to just 367,000. Tokenomics post-Ethereum unification was created to aid in the deflation of Ether. However, as a result of falling gas prices and fewer DAUs, Ethereum’s inflation rate increased by 0.072 percent points over the previous 30 days, adding more than 7,100 ether.
A prominent method for assessing the status and mood of a PoS blockchain such as Ether is the “total value secured” indicator. Ethereum’s TVL hit a yearly peak of roughly $83.9 billion, but since then, it has lost close to $60 billion. The Invest in America Act was approved by Congress on August 9 and signed into law by Joe Biden. The measure received criticism from the blockchain network for what they considered to be detrimental language. The law is scheduled to go into operation in 2024.
