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Ethereum may grow by 3.2% by the end of April
As May approaches, expectations are growing regarding the possible approval of a spot ETF on Ethereum. This event has attracted the attention of traders and cryptocurrency investors, as Ethereum’s status ETH $3,332.55 Bridged Ether (StarkGate) -1.24% Market capitalization $0.3 billion VOL. 24 hours $1.44 billion as the second largest virtual coin by market capitalization implies significant potential benefits.
However, despite the hype, ETH has recently struggled to keep up with Bitcoin BTC $95,840.60 Bitcoin -0.94% Market capitalization $1.9 trillion VOL. 24 hours $2.39 billion . «The three-year low ETH/BTC exchange rate poses a challenge to what enthusiasts call a 'flip,' a hypothetical scenario where Ethereum surpasses Bitcoin as the dominant cryptocurrency in terms of market capitalization,» Finbold analysts say.
Several factors contribute to this lag. One of the key reasons is the decline in activity on the Ethereum network. The number of active users and the total volume of transactions in ETH decentralized applications (DApps) have dropped significantly.
The regression is worrisome because DApps are the heart of the Ethereum ecosystem. They are platforms that allow users to interact with decentralized finance (DeFi), non-fungible tokens (NFTs), and other blockchain-based functions.
When user engagement with DApps drops, it indicates that there are problems with the Ethereum network itself or a lack of innovation and development in the DApps ecosystem.
Adding to ETH’s problems is the growth of Solana SOL $184.91 Solana -0.24% Market capitalization $88.63 billion VOL. 24 hours $0.72 billion . Competitive blockchains are gaining market share in the DeFi space, especially with recent trends in meme and stablecoin transfers.
Using machine learning algorithms, financial analysts predict a cautiously bullish outlook for the Ethereum price. Artificial intelligence-based tools predict a continuation of the positive trend, which could lead to ETH’s growth to $ 3,633 by the end of April.
This means a potential increase of 3.15% from the current price. Although the upward trend will be positive, it is expected to be relatively moderate.
According to the CoinMarketCap analytical tracker, at the time of writing, ethereum is showing a 4.57% gain and is trading at $ 3,235. The total number of coins circulating on the market is $ 388.4 billion. Traders made daily trading deals worth $ 22.6 billion. ETH’s market share amounted to 16.1%.