ETH price retained healthy monthly gains despite short-term sell pressure compared to BTC.
August has turned out to be one of the best months for the Ethereum network. As the month wraps up, here’s a glance back at some of the network’s major achievements during the last 4 weeks.
The Ethereum network achieved multiple noteworthy milestones in August. Its ecosystem demonstrated robust activity as evidenced by its DEX volume.
The latter pushed over $139 billion, which was the highest monthly DEX volume figure in history.
Ethereum monthly DEX volume/ source: DeFiLlama
The Ethereum network’s impressive DEX volume was backed by robust address activity.
Its active addresses soared above 16 million in August, which was unsurprisingly the highest monthly active addresses that the network has ever achieved.
The Ethereum network also achieved a record number of monthly transactions at over 50 million TXs.
All this meant that August was the busiest month for the network. But at the core of this outcome was one major change that led to a flood of investors.
Another major event occurred that shaped Ethereum’s favorable outcomes. Bitcoin dominance drastically dropped below 60% signaling that attention was shifting in favor of altcoins.
Meanwhile, ETH dominance soared aggressively, indicating that most of the attention shifted in favor of ETH.
Ethereum ETF inflows also outpaced Bitcoin ETF inflows at around the same time. This confirmed that smart money was now exploring higher gains beyond BTC, and ETH was in the crosshairs.
Consequently, ETH maintained a strong rally, which pushed the price to a new all-time high. This outcome was backed by speculative buying, as well as rising organic demand thanks to the rising network activity.
Ethereum had the advantage of being the second most trusted blockchain after Bitcoin. The same applied to ETH, hence the massive liquidity flows that favored it in August.
Some key announcements also supercharged the Ethereum liquidity influx. Among them was the reveal that Wall Street had plans to build on Ethereum.
Speaking of liquidity, Ethereum was on track to conclude August with over $149 billion worth of liquidity, which was also a new ATH.
ETH price was down by roughly 11% at press time, barely one week after achieving a historic top.
It too was not spared by the latest bearish wave, but zooming out on larger timeframes revealed that it still outperformed BTC.
For example, ETH price was still up by over 17% in August. Bitcoin was on track to close the month in the red after a 6% retreat from its monthly opening price.
ETH’s ability to withstand the recent market shortfalls was a clear confirmation that the sentiment remained strong.
The cryptocurrency still demonstrated relative strength despite the recent pullback. Its RSI still managed to stay above 50%.
But what’s next for ETH price, especially as September rolls in? Recent data still indicated that liquidity flows could still favor the cryptocurrency.
For example, a recent report revealed that a Satoshi-era wallet swapped 2000 BTC for 49,850 ETH.
Such swaps underscore the expectation that BTC may offer diminishing returns compared to ETH. This underscored the expectation that ETH bulls may extend their dominance.
The same expectations were reflected in recent reports stating that ETH whales were aggressively accumulating ETH during the recent dip.
Moreover, rising institutional adoption meant that ETH still had a lot of untapped potential.
Nevertheless, downside risks remained, especially in instances where the market sentiment was heavily bullish.
Market manipulation could set the pace for heavy liquidations, as was the case recently.
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