TechFlow News, March 13: According to a report by The Block, CryptoQuant analysis indicates that Ethereum is facing an “adoption paradox”—network activity continues to hit all-time highs, yet ETH’s price has sharply declined, resulting in a clear divergence between the two metrics. Julio Moreno, CryptoQuant’s Head of Research, stated that if the bear market persists, ETH’s price could fall to approximately $1,500 by the end of Q3 or early Q4 this year.
CryptoQuant data shows that Ethereum’s daily active addresses surpassed the bull-market peak recorded in 2021 last month, and internal smart contract call volume also reached an all-time high. Expansion in decentralized finance (DeFi), stablecoins, and Layer-2 networks are the primary drivers behind this growth. However, ETH’s price has fallen more than 50% from its current cycle’s all-time high, rendering the historically positive correlation between network activity and price clearly ineffective. Julio Moreno noted that for ETH to emerge from the bear market, two conditions must be met: net capital inflows must turn positive, and exchange inflows must decline.
