Ethereum (ETH) network activity has reached its lowest point of the year, with just 361,078 active wallets recorded on Sunday (March 16). New demand has also dropped, with only 86,539 new wallets created.
The decline in network participation has increased inflationary pressure on Ethereum, as the circulating supply exceeds 120 million ETH. Over the past 30 days, 71,172 ETH has been added to the supply.
Ethereum is facing both technical and inflationary pressures, which are impacting its long-term price projections. Some analysts predict that Ethereum may underperform compared to Bitcoin (BTC).
Additionally, Ethereum is facing challenges from the dominance of Layer-2 networks and a decrease in the total value locked (TVL) in DeFi. Technical patterns suggest a potential price drop for Ethereum if key support levels are breached.
