Ethereum Price Struggles Continue Amid Slowing Activity and Rising Competition

Ethereum's price struggles continue as it fails to hold above $2,400 for an extended period. Data shows that the cryptocurrency has been unable to stay above this threshold over the past three months, resulting in a 21% decline in value so far this year.

Slowing on-chain activity is a major contributor to Ethereum's woes. Decentralized exchange (DEX) trading volume has dropped by 53% over the past six months, while decentralized application (DApp) revenue has fallen by 49%. A cooling memecoin market and decline in token issuance have also hurt activity.

The recent spate of hacks has further damped investor sentiment. Hack-related losses across the industry reached $630 million in April alone, with KelpDAO and Drift Protocol accounting for over 80% of the total.