- The user activity of Ethereum fell to the lows until 2025, which indicates the demand for the decreasing demand and potential inflatoid pressure.
- With weak statistics on the chain and growing competition, the position of Ethereum is questioned as a leading blockchain.
User activity on the Ethereum [ETH] Network slips and casts a shadow on the demand for the leading Laag-1 Blockchain.
Recently, ETHs Daily active addresses and new wallet creations reach their lowest levels in 2025. This decrease emphasized reduced involvement in the chain.
The falling user statistics from Ethereum are concerned about his ability to maintain his dominance. Faster and cheaper competitors reinforce the challenge for the position of Ethereum.
Ethereum’s on-chain statistics sink as the network demand decreases
Ethereum experiences a sharp withdrawal of user activity, with important network indicators that have been falling to their lowest levels this year.
On March 16, the number of active addresses that participated in ETH transactions fell up to 361,078, the lowest day count that has been registered this year this year.
This steep decline emphasizes the weakening of involvement in the chain, a measuring trick that is closely linked to the demand for transactional demand and the generation of reimbursements.
Source: Glassnode
The decrease in active use lowers the amount of ETH that is burned by gas costs, which increases the inflationary pressure of the asset. A weaker deflationary story can hollow the trust of investors.
New wallet creation has also fallen sharply. On Sunday, only 86,539 new ETH addresses were created, the lowest this year.
This trend reflects the decreasing speculative interest and reduced organic onboarding to the Ethereum network.
Source: Glassnode
Together, these on-chain statistics suggest a wider cooling in the appetite of the user for Ethereum, because the concerns about inflation and alternative blockchain ecosystems continue to mount.
Impact on the ETH range
With decreasing activity on the chains, the range of Ethereum shifts to inflation. In the past month, more than 71,000 ETH, worth $ 135 million, was added to the circulating stock, which exceeds 120 million ETH.
The decrease in transactions has led to fewer costs being burned, which weakens the deflatory mechanism of Ethereum. Without a strong demand to prevent the increased issue, the surplus offer creates a consistent downward pressure on the price of ETH.
This trend evokes the concern of investors about the long -term value of the network.
Ethereum Price Outlook
Ethereum struggled to regain the momentum and acted around $ 1,894 at the time of the press, after a daily dip of 1.6%.
The RSI remained under 40, which continues to suggest bearish sentiment and weak purchasing pressure. Obv also fell sharply, which enhances the lack of meaningful accumulation.
Source: TradingView
Meanwhile tThe MacD indicator tried a bullish crossover; However, it remains deep in a negative area. This suggests that any recovery can be of short duration, unless supported by a stronger trade volume.
After the sale of the beginning of March, the Ethereum price action was usually sideways, with temporary stability just above $ 1,850.
If bulls do not quickly recover the $ 2,000 level, Ethereum could be further confronted. In addition, Gedempte wider market sentiment and weak activity on the chains can continue to weigh on its price movement.
