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With the Ethereum price slowly demonstrating bullish traction after reclaiming the $2,000 mark, sentiment is turning positive once again. During this price action, investors are choosing to hold the leading altcoin rather than sell, which is indicated by a significant drop in crypto exchanges’ reserves.

Available Ethereum On Exchanges Hits New Lows

Following the bounce in Ethereum’s price, the supply of ETH sitting on cryptocurrency exchanges has experienced a sharp decline. According to the report, the number of the coin available on crypto exchanges has fallen to new lows, signaling a notable shift in market structure and sentiment.

As per the chart shared by Leon Waidmann, an optimist and the head of research at Lisk, the metric is currently sitting at a multi-year low. As coins continue to migrate from trading platforms into private wallets or long-term storage, the amount of liquid accessible for instant sale is gradually decreasing.

Currently, over 16 million ETH is left on cryptocurrency exchanges, falling from about 23 million ETH in 2023. Even though the price of ETH has declined sharply from a new all-time high, holders kept withdrawing their coins from platforms. This is considered a positive development for Ethereum as fewer ETH reserves on exchanges means less immediate sell pressure on the altcoin.

When reserves drop during a price crash, this is an interesting trend as it implies that holders are not panic-selling. Waidmann highlighted that these holders are deliberately moving ETH off cryptocurrency exchanges to staking contracts, cold storage, and Decentralized Finance (DeFi).

These investors are making an active choice to hold, and this is historically how supply shocks are started without a price pump. While everyone else is preoccupied with the red candles, there is a silent accumulation. The market may be scared currently, but on-chain data is telling a different story.

ETH Is Attracting A Massive Wave Of Adoption

Ethereum adoption is picking up pace at a significant rate, as evidenced by its mainnet activity. The network’s activity has spiked to unprecedented levels, with its daily transactions climbing to an all-time high despite the bear market. The milestone shows a significant rise in on-chain demand, which is fueled by increased DeFi activity, stablecoin transfers, NFT interactions, and the emergence of AI and real-world asset protocols.

Data shows that the mainnet transactions per day have surged to nearly 3 million. This is a notable number when compared to levels seen in previous cycles, especially during a bull run. Waidmann noted that the current number of daily transactions is more than the ones seen in the 2021 bull run and in the 2023 recovery.

Despite the fact that the price of ETH is down, the network is experiencing its busiest period, signaling sustained engagement beneath the surface. Record-breaking transaction counts frequently indicate increasing utility rather than being pure speculation.

Featured image from Freepik, chart from Tradingview.com

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Cardano price has remained under pressure as the network’s challenges continued. ADA was trading at $0.3112, which was slightly above the year-to-date low of $0.30. It has plunged by more than 90% from its all-time high.

Cardano NFT and DeFi volume sinks

Cardano has been selling off recently as challenges that have existed its ecosystem continues. For a chain like Cardano, its success is usually determined by the level of activities in its network. This means the volume of NFT sales, DeFi transactions, and activity in its metaverse.

A closer look at key parts of its ecosystem shows that challenges remain. For example, according to DeFi Llama, the total value locked (TVL) in its DeFi ecosystem has continued dropping. After peaking at $434 million early this year, the TVL has collapsed to about $76 million.

Most DeFi platforms in Cardano, including Meld, Minswap, Indigo, and WingRiders have seen assets decline. A likely reason for this performance is that DEX users have been inclined to use mainstream products like GMX and Uniswap.

Meanwhile, data compiled by CryptoSlam shows that the volume of Cardano NFTs has been in a downward trend. In December, it has handled just $3 million worth of coins. In comparison, embattled Solana handled NFTs worth over $1 million in the past 24 hours.

In November, Cardano NFTs handled NFTs worth just $8 million, down from the previous $23 million. At its peak, Cardano handled volume worth $62 million in April. Other metrics, including buyers and sellers, show that the situation is getting worse.

Therefore, fundamentally, there is evidence that Cardano’s ecosystem is not growing as fast as the developers were expecting. As such, it faces an uphill battle to compete with the likes of Arbitrum and Ethereum.

Cardano price prediction

The daily chart shows that ADA price has been in a bearish trend in the past few months. It managed to move below the important support level at $0.3883, which was the lowest level on May 12. It was also the lower side of the descending triangle pattern shown in black.

Cardano has moved below all moving averages while the Relative Stength Index (RSI) has moved to the neutral point at 40. Therefore, I suspect that ADA crypto price will continue falling in the coming days as enthusiasm about cryptocurrencies slip. The next key catalyst for the coin will be the upcoming Fed decision.