Don’t Be Fooled by Cheap ETH Gas; Look at the Exchange Balances Instead
Main Idea
Ethereum's low gas fees and declining exchange balances present conflicting signals, with reduced on-chain activity but potential for a future price rally due to a supply shock.
Key Points
1. Ethereum gas fees have dropped to 0.528 gwei, the lowest in recent weeks, indicating reduced on-chain demand.
2. Exchange balances for ETH have fallen to a multi-year low of under 19.5 million, suggesting a potential supply shock.
3. 88% of Ethereum-based DeFi protocols generated zero revenue in the past 30 days, highlighting low activity.
4. Solana, a competitor, also saw 75% of its protocols generate no recent revenue.
5. A shrinking exchange supply of ETH could precede a price spike, despite current weak on-chain metrics.
Description
Ethereum gas fees have plummeted to just 0.528 gwei, the lowest in recent weeks. Exchange balances for ETH have fallen to a multi-year low of under 19.5 million. 88% of ETH protocols have generated zero revenue in the past 30 days. The Ethereum network is sending deeply conflicting signals this week. On one hand, network activity has ground to a near halt, with gas fees plunging to rock-bottom levels. On the other, a looming “supply shock” on exchanges could be setting the stage for an explosive...
Latest News
- Tether’s Mining OS Set to Go Open Source by End-of-Year, Confirms Paolo Ardoino2025-07-25 17:56:24
- Top 3 Underrated Altcoins Under $1 for 100x Gains in 20252025-07-25 17:20:29
- Wellgistics Health Files to Use XRP for Treasury, Cites XRPL Efficiency2025-07-25 16:20:26
- Over $175M in Insider Unlocks to Hit Markets Between July 28 to August 32025-07-25 15:59:30
- Trump Pressures Fed Chair Powell Over Costly Renovation and Interest Rates2025-07-25 15:34:05