According to foreign reports, Ethereum (ETH), the third-largest cryptocurrency, achieved a historic milestone in December 2018. Its on-chain (regular) transaction volume reached an all-time high of 115 million ETH (excluding the 2016 DAO hack-induced hard fork). Data reveals that transaction counts stabilized from October onward, maintaining monthly volumes between 160,000–170,000.
Despite this peak, the total USD value of these transactions plummeted to a 22-month low—primarily due to Ethereum's price dropping approximately 90% since early 2018. The annual on-chain transaction value for Ethereum in 2018 was $815 million, significantly lower than 2017’s $1.1 billion.
Key Trends and Analysis
Crypto analytics firm Diar noted: "From January 2018’s peak to December, on-chain transaction value declined by 97%, largely driven by Ethereum’s 80% price drop."
Key observations:
- Increased ETH Movement: More Ether was transferred in fewer transactions.
- Bear Market Impact: The prolonged crypto winter drastically reduced the total USD value of these transactions.
Market Challenges and Predictions
Ethereum faced significant headwinds in late 2018:
- Price Volatility: Delays in the Constantinople hard fork upgrade triggered a 6% price drop.
- Competitive Pressure: Bloomberg Intelligence analyst Mike McGlone warned that ETH could decline further amid rising competition and market instability.
- Controversial Outlook: Bitcoin Core developer Jeremy Rubin speculated that ETH might eventually "go to zero," though Ethereum’s underlying technology would remain relevant.
Frequently Asked Questions (FAQs)
Q: Why did Ethereum’s transaction volume hit a record high while its USD value dropped?
A: The surge in ETH-denominated transactions offset the dollar value decline caused by Ethereum’s price depreciation.
Q: How did the DAO hack affect Ethereum’s transaction records?
A: The 2016 DAO hack led to a hard fork, creating Ethereum (ETH) and Ethereum Classic (ETC). Post-fork data excludes the hacked transactions.
Q: What factors contributed to Ethereum’s price decline in 2018?
A: Market saturation, delayed upgrades, and broader crypto bear trends collectively drove the downturn.
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Keyword Integration
Core Keywords: Ethereum, on-chain transactions, cryptocurrency bear market, ETH price, DAO hack, Constantinople upgrade.
Note: Keywords are naturally woven into the content without overuse.
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