Major DeFi protocols on the Ethereum network including Uniswap and Curve have seen their weekly users dip substantially.
- ETH’s ongoing volatility has resulted in the altcoin’s price oscillating wildly since May 13.
- The total market cap of the digital asset industry has dipped by 13% over the last couple of weeks.
- The Web3 industry has been able to rake in AU $4.22B (US $3B) worth of funding over the last 30 days, reports suggest.
Ethereum’s price action has remained lock-instep with that of the crypto market, with the altcoin exhibiting weekly losses of 4%. ETH is currently trading at AU $2,817 after having dipped to a relative low of AU $2,700 yesterday.
ETH’s continued movements between AU $2,650 to $3,000 — representing a volatility ratio of 13% — over the last 12 days has resulted in more and more capital moving out of the digital asset sector. The latest iteration of CoinShare’s weekly Digital Asset Fund Flows study notes that $141 million worth of investments exited the space between May 13 – 20. This trend could continue into the future, potentially taking the price of ETH lower.
Network activity associated with Ethereum too slipped by 27% in comparison to last week. Active addresses related to ETH decentralized applications (DApps) are dropping as well, with Uniswap (UNI) V3 and Curve (CRV) losing 24%, 52% of their weekly users. These poor technicals suggest that ETH may not be close to breaking its crucial $2,150 resistance anytime soon.
The total market capitalization of the crypto sector lies at AU $1.86T, down 13% over the last 14 day stretch. ETH’s valuation stands at AU $340B ($242B) while representing a market share of 18.07%.
Web3’s utility far exceeds the realm of just blockchain tech
While the term Web3 has gained an increasing amount of traction in recent months, Polkadot founder Gavin Wood stated in a recent interview that its application and utility stretches far beyond the realm of just blockchain. Speaking at the World Economic Forum’s Annual Meeting in Davos, Switzerland, Wood was quoted as saying:
“I don’t think Web3 needs to evolve, really, from its origins too much yet but maybe in the future, it will. I don’t want to hope or have blind faith that the service I’m using is operating correctly or dealing with my data correctly and not being hacked.”
Projects within the Web3 space have continued to accrue a lot of attention from venture capital firms, with the Web3 gaming and metaverse niches alone having drawn in over US AU $4.22B ($3B) worth of funding over the last 30 days. The digital asset sector as a whole has been able to rake in neary AU $21B (US $15B) worth of investment over Q1 2022, around 50% of last year’s cumulative investment total.
Disclosure: The author owns a range of cryptocurrencies at the time of writing
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