Ethereum Network Activity Slumps as Outflows Accelerate

[madmax]

Beyond technical signals, onchain data shows weakening fundamentals across the Ethereum network. Daily transaction counts recently fell to 1.95 million, down 33% from 2.9 million recorded earlier this month. A similar drop in activity in January 2024 coincided with a 30% correction in ETH’s price, suggesting that slowing network usage can amplify downside momentum.

Total value locked (TVL) across Ethereum smart contracts has also declined sharply — falling from $70 billion at the start of the month to $54.5 billion, a drop of more than 22% in just over two weeks. Decentralized exchange activity weakened significantly, with platforms like Uniswap seeing deposits fall 26%, while global Ethereum investment products recorded $85.1 million in net outflows during a single week. Together, declining TVL, shrinking DEX volumes, and institutional outflows reinforce the growing bearish pressure surrounding ETH.

[tradelikepro]

$85M in product outflows in a week shows institutions aren’t stepping in to catch the dip (yet).