ETH prices prospects are attenuated as Ethereum Dex volumes fall 34% in a week

The price of Ether (eth) fell below $ 2,200 on March 9 and has had problems recovering since then. The Altcoin has dropped by 14% in March and the decline has harmed the feeling of investors, especially because the broader cryptographic market only fell 4% in the same period.

In addition to the bearish feeling, merchants are also worried about eth price corrections after a 34% weekly drop in the decentralized exchange activity (DEX) in the ethereum network.

The volumes of Dex in ethereum fell 34% in the last seven days, a trend that also affected its layer 2 solutions as a base, referee and polygon. The market drop also reached some competitors of ethereum, with the activity of Solana 29% and SUI fell by 17%. On the other hand, the BNB chain saw an increase in the weekly volume of 27%, while singing increased an impressive 445%.

ethereum's negative volume trends include an 85% drop for the Maverick protocol and a 46% decrease for Dodo compared to the previous week. More markedly, tariffs in Pancakeswap, the Top Dex in the BNB chain, exceeded those of UNISWAP. While ethereum remains the leader in DEX volumes, the loss of rates reduces the demand of eth.

Pancakeswap, which operates exclusively in the BNB chain, generated $ 22.3 million in rates for seven days, surpassing Unisswap, which is executed in ethereum, base, referee, polygon and optimism. Other signs of the weakness of the ethereum rate include Jupiter and Aave of Lido Trailing Solana, the leading loan protocol in ethereum, which generate fewer rates than Meteora, an automated market manufacturer and supplier of automated liquidity with headquarters in Solana.

ethereum leads in the total value blocked, but the gap is being reduced

On the positive side, ethereum remains the dominant leader in total value blocked (TVL) at $ 47.2 billion, but a 9% weekly decrease has significantly reduced the gap with competitors. In addition, its layer 2 ecosystem showed increasing signs of weakness during the seven days prior to March 18.

Solana TVL fell 3%, while the BNB chain saw a 6% increase in deposits compared to the previous week. The most outstanding negative aspects for ethereum TVL include a 11% decrease in Stargate Finance for seven days, a 9% drop in Maker deposits and a 6% decrease in SPARK.

The weakening of ethereum in the metrics of the chain aligned with a lower demand of long leverage in the future eth, since its cousin over the spot markets fell below the 5%neutral threshold, indicating a weaker confidence of the merchants.

The current eth eth cousin of 3% is the lowest in more than a year, which highlights the weak demand of bullish merchants. Meanwhile, the funds quoted in exchange (ETF) Spot ethereum have registered $ 293 million in net exits since March 5, indicating reduced institutional interest.

After the tong update, eth needs a competitive advantage and sustainable adoption '

ethereum also faces a growing Solana competition in the Memecoin sector, particularly after the launch of Trump's official tab (Trump). Simultaneously, Tron and Solana have captured $ 75 billion combined in Stablecoins by taking advantage of the lowest transaction rates. In addition to the pressure, the future perpetual hyperlycides introduced their own block chain, further challenging the ethereum market position.

Related: Hyperliquid opened doors to the 'democratized' cryptography whales: analyst

All this was developed in the middle of the heated debates between investors and developers on whether ethereum Layer-2 solutions are being disproportionately benefit from extremely low progress rates. Essentially, the decrease in the DEX market share reflects the diminishing institutional interest, particularly as ethereum's native yield is in just 2.3% when adjusted by the growth of the supply driven by inflation.

In order for the ether to recover the impulse, it must demonstrate a clear competitive advantage. The next 'Pectra' update must provide a viable route for the sustainable adoption of users; Otherwise, the chances remain stacked against eth overcoming their rivals.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The points of view, the thoughts and opinions expressed here are alone of the author and do not necessarily reflect or represent the opinions and opinions of Cointelegraph.