Analysts note that recently the Ethereum network has shown record activity; however, this has not been accompanied by an increase in the cryptocurrency’s value. Despite historical highs in the number of daily active addresses and smart contract activity, the price of ETH has fallen by more than 50% from its local peaks.
This is reported by Finway
Increased Activity and the ‘Adoption Paradox’
CryptoQuant experts have termed this phenomenon the ‘adoption paradox,’ where increased network usage does not lead to a rise in the asset’s value. In February, the number of daily active Ethereum addresses even surpassed the figures from 2021, when the market was showing an upward trend. Additionally, a record number of internal smart contract calls—automated transactions occurring in decentralized applications—has been recorded amid the development of DeFi sectors, stablecoins, and Layer 2 (L2) solutions.
However, analysts point out that the historical correlation between the growth of smart contract activity and the value of Ethereum has significantly weakened. Today, the determining factor for the market is the volume of ETH flows on cryptocurrency exchanges.
“The increased ratio of Ethereum flows on exchanges compared to Bitcoin indicates greater selling pressure on the asset, which explains its lag behind the first cryptocurrency,” said CryptoQuant.
Probability of Further Decline and the Impact of Investment Demand
According to Julio Moreno, head of research at CryptoQuant, if the bearish trend in the market persists, the price of Ethereum could drop to around $1500 by the end of the third or the beginning of the fourth quarter of this year.
Additionally, the decline in investment demand is having a negative impact on the market. According to CryptoQuant, the realized capitalization of Ethereum over the past year indicates a capital outflow from the ecosystem. Experts believe that to end the bear market, a revival of fund inflows into the network and a reduction in the volume of ETH coming to exchanges are necessary.
As of March 2026, the price of Ethereum is approximately $2100.
ETH/USDT Chart on Binance. Data: TradingView.
Earlier, a new standard for the economy of AI agents was proposed within the Ethereum ecosystem.