Don't blame it on the S&P 500: ETH was priming to dump

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Sep 5, 2020

So while the general consensus seems to be that the crypto market tanked as part of a global financial regression, the fact is that Ethereum’s fundamentals were already priming for a correction ahead of the September 2nd dump.

I’ll outline some of these exceedingly bearish indicators below, and give my thoughts on the post-dip state of the Ethereum network.

ETH's On-chain Activity

Let’s start with Ethereum’s general on-chain activity, which has been in a steady and ongoing decline since early August. Over the past 30 days, the amount of unique addresses interacting with the Ethereum network daily has shrunk by nearly a third (-31.4%), hitting a 4-month low 312,830 on August 30th. In the same vein, the amount of new addresses created on the network daily has dwindled from 125,000 on August 6th to 80,725 today - a 36.5% decline:

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