Fall In Network Activity May Cause Ether To Fall Below $1,000

In September, Ethereum’s Merge, which promised faster transaction times, better security, and a 99% reduction in energy use, ruled the cryptocurrency world.

ALSO, READ Ether Trades At $1900 After Goerli Testnet Merger

The Ethereum main net’s proof-of-work (PoW) blockchain, which was in use at the time, merged with the proof-of-stake (PoS) Beacon Chain during the Merge event, putting an end to PoW as the Ethereum blockchain’s consensus method.

On the Beacon Chain, Ethereum joined ranks of other major PoS blockchains such as BNB Chain, Cardano, and Solana. Ether is the second largest cryptocurrency by market cap after Bitcoin and Ethereum is the chain that has spearheaded decentralized finance (DeFi) and nonfungible token (NFT) activity.

Fall In Network Activity May Cause Ether To Fall Below $1,000

However, new statistics have investors worried that despite the positive development of the blockchain, its native token may fall in price, with many suggesting that the price of Ether will fall below $1,000 in the short term.

ALSO, READ Ether’s Strength Over Bitcoin Reaches Yearly High As The Merge Kicks Off

This worry is because network activity has dropped significantly. Ethereum has witnessed a substantial drop in its daily active address (DAA) count over the last four months.

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