Data shows that Ether price dynamics are being driven by capital flows rather than network activity growth, said CryptoQuant analyst Julio Moreno.
Ethereum is seeing a growing divergence between the level of activity on the network and spot prices, suggesting that transactional activity alone isn’t driving demand for Ether.
Ethereum network activity has been reaching record highs, according to CryptoQuant, including active addresses, token transfers, and smart contract calls.
Total active addresses spiked to over 1.1 million in February, more than double the prior-year period, while token transfers topped a million in March, up from around 750,000 in December, according to CryptoQuant data.
