• Ethereum’s DEX volumes have been declining, but the Total Value Locked (TVL) has seen a surge.
• Gas prices on Ethereum dropped to a 5-month low, and interest in NFTs remained steady.
• Traders are turning bullish on ETH as evidenced by the high demand for call options and the Max Pain point set at $1,750.
Ethereum DEX Volumes Decline
Ethereum’s DEX volumes began to decline while Total Value Locked (TVL) surged. This suggests that dApps and protocols on the network helped sustain value on the protocol. Meanwhile, gas prices dropped to a five-month low, indicating that activity on Ethereum remains consistent in spite of declining DEX volume.
Demand For NFTs Remains Steady
Interest in Non-Fungible Tokens (NFTs) remained consistent over the last month despite blue chip NFT collections such as Axuji, Crypto Punks and Bored Ape Yacht Club [BAYC] witnessing a decrease in volume and sales.
Traders Turn Bullish On ETH
The price of ETH has been steadily increasing over the past week leading traders to making some interesting decisions. GreeksLive’s data indicates that 180,000 ETH options were about to expire at press time with Put Call Ratio for ETH standing at 0.86 suggesting a higher demand for calls and an overall bullish sentiment among traders. The Max Pain point was also set at $1,750 which could be an area of interest for market participants.
Notional Value Of ETH Options High
The notional value of ETH options amounted to $340 million indicating significant value at stake amongst market participants. It is also worth noting that this figure is significantly higher than what it was one year ago when it had only reached around $100 million.
Conclusion
Overall, Ethereum continues to remain dominant in both DeFi and NFT sectors despite competition from other blockchains rising up within the ecosystem. Despite declining DEX volumes, gas prices dropping to five-month lows and blue chip NFT collections decreasing in volume and sales traders remain bullish on ETH as shown through high demand for call options and Max Pain points set around $1750 mark implying substantial capital inflow into the network going forward.
