Drücke „Enter”, um zum Inhalt zu springen.

ENS Network Sees Decline in New Users, Traders Turn Pessimistic

admin 0

• New data suggested a decline in monthly registrations on the ENS network
• Traders turn pessimistic as on-chain metrics had a cynical outlook
• Despite whale interest, ENS token activity was falling

ENS Network Sees Decline in Monthly Registrations

New data has suggested a decline in monthly registrations on the Ethereum Name Service (ENS) network. This decline has caused traders to become pessimistic as on-chain metrics have taken an increasingly cynical outlook.

Analysis of On-Chain Metrics

Based on data provided by Dune Analytics, despite the high number of users on the ENS protocol, the overall activity of these users wasn’t very high – with approximately 80% of users having just one ENS domain name registered under their name. This could pose threats for the future performance of the protocol itself.

Since November 2022, there has been a drastic decrease in new addresses registered onto the network from 38,134 to 19,366 over this period. In addition to this, Santiment’s data also showed that overall activity for ENS tokens had declined significantly over time – with daily active addresses transferring ENS decreasing and velocity also declining at an alarming rate.

Whale Interest Remains High

Despite these negative trends in activity levels, whales continue to demonstrate an interest in ENS tokens – indicated by increasing percentages of large addresses accumulating them. At press time, prices for ENS tokens have increased from $13.69 to $15.80 in the last week alone due to whale support – however it is still unclear how long this trend will remain if whales decide to pull out their positions at any point soon.

Traders Turn Pessimistic

The overall sentiment surrounding prices for ENS tokens appears to be turning increasingly bearish as more short positions are being opened up by traders according to Coinglass‘ data which currently stands at 52.78%. However MVRV ratio isn’t particularly high so it remains uncertain whether or not traders will end up profitable even if they sell at current prices or not yet..

Conclusion

In conclusion, it appears that while whale interest remains high for now and prices have seen a recent surge; there is still some uncertainty surrounding future performance of Ethereum Name Service (ENS) token if whales choose to pull out positions soon or activity levels fail to increase substantially anytime soon.

Die Kommentare sind deaktiviert.