The seven-day moving average of the daily trading volume of the largest altcoin Ethereum (ETH) has fallen by 55% in the last 30 days, The Block reported.
Ethereum transaction volume and operations dropped significantly and sharply in August, most recently dropping to a monthly low of 1.07 million daily transactions on the network on Sunday.
The seven-day moving average of Ethereum trading volume has fallen from $6.56 billion on July 26 to $2.9 billion today in U.S. dollars. Total monthly trading volume on Ethereum in July was $134.71 billion, while August trading volume is currently down to $91.46 billion.
Despite the drop in ETH trading volume, Coinbase analysts noted that the slowdown in August this year was less severe than in previous years.
Analysts David Duong and David Han noted that they viewed the decline in transaction volume and overall activity on Ethereum in August as part of a cyclical pattern consistent with the historic summer recession.
“While the decline this year has been less pronounced than in previous years, the decline in ETH trading volumes in August was a modest 7.7% compared to the 16.8% average decline observed over the past five years.”
Finally, BRN analyst Valentin Fournier said that the decreasing interest of institutional investors in Ethereum was also effective in this decline.
“While there is a seven-day positive streak for Bitcoin ETFs, Ethereum is lagging despite the decreasing outflows from Grayscale. This suggests that Ethereum is not gaining traction from institutions. We recommend shifting a higher allocation to Bitcoin as we expect Ethereum to continue to lag behind,” he said, citing the underperformance of ETH ETFs for this situation.
*This is not investment advice.
