Ethereum price The bearish situation in the broader cryptocurrency market has continued to increase volatility, sending the altcoin’s value down to around $3,000, levels not seen in months. While the price of ETH has fallen sharply, the network’s real economy has been growing at a much faster rate than the market value of ETH.
ETH market is slowing, real economy is expanding
Ethereum’s on-chain economic growth is much faster than the movement of the underlying asset price. Overall, Ethereum Network As evidenced by soaring trading revenues, surging stablecoin payment volumes, and an accelerating decentralized app ecosystem, it has quietly entered a phase of real, tangible growth.
The growing gap between prices and the real economy is shared Written by Milk Road, market expert at social media platform X (formerly Twitter). According to market experts, the real economy of the native network has experienced growth three times faster than the price of ETH.
According to data shared by Milk Road: Stablecoin supply The amount available on the Ethereum blockchain has increased by 65.5x. This significant growth means money is only moving where the activity is happening, and is the clearest signal of real demand in the broader cryptocurrency sector.
Meanwhile, Milk Road emphasized: ETHDuring the same period, the fully diluted market capitalization increased 21.6 times. A discrepancy between Ethereum’s core economic activity and its market value could lead to a rebalancing, increasing the likelihood that investors will underestimate the network’s true strength.
What this means is that blockchain’s economic engine has expanded far beyond its valuation over nearly five years. However, experts pointed out that if prices ultimately catch up with activity, as they always do, the difference between stablecoin supply and fully diluted market capitalization is unlikely to remain this large indefinitely.
Fundamentals remain strong despite Ethereum’s weak mood
Ethereum is still setting new milestones by demonstrating its on-chain strengths despite continued market volatility. Leon Waidmann, head of research at the On-chain Foundation published Although prices have fallen, the blockchain-based dollar economy recently hit an all-time high.
For the first time ever, the overall value stablecoin The amount protected on-chain exceeds $300 billion. Meanwhile, ETH Layer 1 alone accumulates over $170 billion of total supply, reflecting its growing adoption and rising dominance. Overall, sentiment towards ETH, especially the price action, may be weak, but the basics Stay solid.
In another X post, Waidmann says stated While cryptocurrency players continue to declare ETH dead, blockchains continue to act in the opposite direction. The network’s block space usage has been growing almost non-stop over the past decade.
Current block space consumption is set to hit an all-time high in 2025. According to Waidmann, this is more than just hype. This is driven by real economic activity settling into a global trust layer like Ethereum, as evidenced by the continued growth in fundamentals.
Featured image from Pxfuel, chart from Tradingview.com
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