$ETH divergence: Ethereum's social dominance reached a one-year high, while transaction volume is at yearly lows.

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@0xc26524ff3e2e5078afbb64c9b4ce4474a9ed4140
May 25, 2024
Ethereum' Social Dominance vs. Transaction Volume (7d). Source: Vini Barbosa (@vinibarbosabr)
  • Price (ETH): $3,738
  • 7-day Social Dominance (ETH): 14.21%
  • 7-day Transaction Volume (ETH): $7.63 million

ETH price has followed the buzz around related keywords on social media, but the network's use has dropped - both at opposed record levels.


As a comparison, Ethereum reached $4,067 on May 10 with an 8.08% social dominance and a $19.07 million transaction volume. The latter peaked at $20.87 million, marking a local price top.


The rising social dominance, followed by a price surge amid a low transaction volume (in USD), suggests that retail traders currently dominate the action on Ethereum, which is concerning, and we might see a correction soon if the network's demand does not increase.


Notably, the social volume surged following news of an incomplete SEC approval of an ETH ETF. Will we see another "buy the rumor, sell the news event?"


It's likely, in my opinion, but I could be wrong.


I don't really care for ETFs.
TradFi could retire, for what it's worth. However, the low transaction volume suggests this is not happening amid a social interest surge for Ethereum.


So, the question is: Will Ethereum really manage to attract real decentralized finance (DeFi) users in the long term?


𝕏: https://x.com/vinibarbosabr/status/1794430276744949933