3 reasons make ethereum outperform its competitors after its collapse to its lowest levels for 17 months

ETHER (ETH) decreased by 13 % between March 8 and March 11, as investors moved to stable income positions in the short term, and in an effort to safety amid global introductory war and increasing concerns of economic shrinkage.

ETH price needs 29 % gains to recover $ 2.5 thousand

The market fears escalated after the United States responded to Canada’s electricity fees with reprisals.

Usually, merchants tend to exaggerate the reaction, which increases the possibility of ether recovery faster than other assets as soon as the market morale improves. While some argue that risk assets are driven by inflation and economy growth, others believe that the gains depend on stimulation and monetary expansion measures.

Regardless of the catalyst for the next run, the ether price must increase by 29 % of its current level of $ 1940 to recover $ 2,500. This step is likely to require increased demand from the recall buyers, whose activities are now at the lowest point in five months.

Traders want to compensate for higher prices for longer settlement periods, making an annual basis average (basis) expected in neutral markets. When the rates are less than this range – such as the current 4.5 % – it indicates poor condemnation ascending.

Excessive optimism played a role in correcting the last Eter, with $ 235 million in the long positions of March 10 and 11 March.

ETH panic has raised a decrease of $ 1744, its lowest level since October 2023. However, many indicators indicate a potential recovery, as ETH derivatives and Onchain standards show flexibility.

Ethereum L2 grows

ETHER has been trading by 60 % less than 4,868 dollars at all since November 2021. This decrease is largely due to the increase in competition in the smart contract sector and the decline in demand for applications such as NFTS (NFTS) symbols, games, introductions, metaphor projects, social networks, and web 3.

However, this perspective overlooks a major factor. In late 2021, the average transaction fee exceeded $ 50, while the activity of the ecosystem of the ETHEREUM -2 was 97 % lower than it is today.

For context, the distinctive symbol swap on the ethereum basic layer cost $ 1.70 on March 11, despite the daily average growth in growth per second, highlighting prominent progress in the network efficiency.

Even if the robots generate 80 % of the second layer transactions, the remaining 20 % of the activity on the base, definition, optimism, zksync and Blast are still almost three times higher than the ethereum layer. However, critics have a valid argument: despite the increase in network activity, auditors earn much less compared to late 2021.

Ethereum regains Dex Topot, grows TVL

ETHEREUM has strengthened its site as the second most common choice for institutional investors in traditional financing, with the support of $ 8.9 billion in the exchange funds on the stock exchange (ETFS).

Meanwhile, competitors like Solana are still awaiting organizational approval for similar ETF products. Even if they got approval, they cannot match the first engine feature of the GrayScale Ethereum Fund, which started public trading in markets that do not need a prescription in June 2019.

Moreover, the ETHEREUM smart contracts, which are measured by the total Locked (TVL), have reached its highest level since July 2022 in terms of ETH on March 11, which represents an increase of 10 % over the past two weeks.

Related to: Strategic encryption reserves will increase the growth of the ecosystem

At 24 million ETH, TVL of ETHEREUM was driven by liquid growth, lending, returning agriculture, and asset symbol in the real world. The network recently regained its main position in decentralized exchange sizes, reaching $ 20.5 billion over seven days and Solana exceeded $ 13.9 billion, according to Defillama data.

This is a thunderbolt look at the ETH price, driven by layer 2 transactions that approach its highest levels ever, restore the first place in the Dex size, and the height of TVL deposits.

Ultimately, the ETher’s reflection continues to be highly dependent on the total economic improvements, but as soon as it is stable, ETH is well placed to restore $ 2500 as a major support level in the coming weeks.

This article is intended for general information purposes and does not aim to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.