Despite encountering recent setbacks, Ethereum (ETH) has the potential to stage a remarkable comeback fueled by the flourishing gaming sector within its network. While the recent FOMC announcement negatively impacted Ethereum’s price, a resurgence of interest, particularly in gaming, may support ETH in reclaiming its previous price levels.
Artemis states gaming protocols such as The Sandbox (SAND) and Axie Infinity (AXS) have witnessed substantial growth on the Ethereum network. Tokens associated with these projects, including $SAND, $ENJ, $CHZ, and $AXIE, have experienced an impressive surge in popularity. This increased gaming activity has resulted in a rise in unique active wallets for these decentralized applications (dApps), thereby boosting transactions and overall network volume—a positive sign for Ethereum’s future.
Furthermore, the surge in gaming activity has led to an upswing in gas usage on the Ethereum network. This benefits Ethereum as it showcases heightened network activity and growing demand for decentralized applications, further solidifying the network’s utility and value proposition.
In addition to the gaming sector, Ethereum’s non-fungible token (NFT) market has also seen increased interest. Santiment’s data reveals a significant growth in the number of NFT trades occurring on the Ethereum network in recent days. However, it is worth noting that newly minted collections have primarily driven the surge in NFT interest. On the other hand, established blue-chip NFT collections like BAYC, MAYC, and Azuki have experienced a notable decline in volume and sales over the past month.
Notably, validators on the Ethereum network have shown a rising trend. Staking Rewards data indicates a 7.09% increase in validators over the last 30 days. However, these validators have witnessed a substantial decline of 46.35% in revenue during the same period, leaving the future optimism of stakers regarding ETH uncertain.
As of now, ETH is trading at $1669.23. However, the velocity of ETH transactions has declined, suggesting a relative lack of ongoing ETH trades. Traders’ sentiment towards ETH remains largely pessimistic, with 52.02% of all positions being short, reflecting a prevailing bearish sentiment among traders.
Despite recent challenges, Ethereum’s gaming sector holds great promise for the cryptocurrency’s potential comeback. The surge in gaming activity, gas usage, and interest in NFTs demonstrate the network’s resilience and appeal. While challenges persist, Ethereum’s ability to adapt and leverage its strengths in various sectors may pave the way for a brighter future.