These long-term indicators show that Ethereum “has never been any healthier”

The Ethereum network has been under strain in recent months, with the trend of decentralized finance (DeFi) going on fueling a huge demand for the network as traders begin to use non-exchanges. centralized (DEX) and provides liquidity for different protocols.

Although network demand has slowed as the frenzy around DeFi has declined, gas prices are still significantly higher than before and often see intense fluctuations that can make network usage impractical.

Though recent network demand highlights the need for better scaling – which is expected by many to arrive later this year when ETH 2.0 starts rolling out. It shook some investors’ confidence in ETH’s long-term prospects.

However, one analyst notes that three main factors are showing the underlying strength of the cryptocurrency and its network at the moment.

Much of Ethereum’s supply has not been moved in more than a year

Despite all activity on the Ethereum blockchain, the majority of ETH tokens being held by investors have not moved in over a year.

This is an extremely positive sign that long-term investors are reluctant to sell their ETH anytime soon, as the majority of the coins held for over a year have not been sold even when the ETH price reached its highest level. was 490 dollars a few months ago.

ETH is extremely healthy

Other factors point to the fundamental strength of the Ethereum blockchain at the present time, with one analyst noting that it “has never been healthier”.

He specifically pointed out the total daily charge paid, the number of call contracts seen since September, as well as the number of active addresses daily.

Although the price of ETH has been stagnant lately and closely monitoring the price of Bitcoin, the combination of many of these fundamentals seems to suggest that its medium-term outlook remains bright.

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