Decoding Ethereum’s state in Q2 and what to expect in Q3 

• Ethereum’s NFT ecosystem, after a decline, registered growth during the end of Q2.
• Though ETH’s daily and weekly charts were green, a few on-chain metrics looked bearish.

Messari recently posted its report on Ethereum’s [ETH] Q2 , highlighting its performance on multiple fronts. The king of altcoins’ state in this new quarter looks encouraging as the crypto market as a whole gains bullish momentum. 

Read Ethereum’s [ETH] Price Prediction 2023-24

It is pertinent to note that Ethereum’s Q2 2023 began on a good note as its price registered an uptick. However, things did not take long to turn sour, as its value plummeted over the next few weeks.

A closer look at Ethereum’s Q2 performance

As per Messari’s report, Ethereum’s network activity remained pretty consistent last quarter compared with the first quarter of the year. In Q1, Ethereum had an average daily address of 0.42 million, while in Q2, it declined slightly to 0.41 million.

However, its average daily transaction remained the same both in Q1 and Q2, as the number stood at 1.05 million. Additionally, the blockchain witnessed overall growth as the total number of unique addresses rose from 227 million to 237 million in the last three months. 

Source: Messari

After the Shaphella upgrade, many expected that ETH staking would witness a decline. However, the opposite turned out to be true. May and June saw the highest and second-highest monthly net inflows into the staking contract, respectively.

Regardless, layer-2s have posed a new challenge for ETH, as they have gotten considerably cheaper than the latter during the last quarter.

Talking about NFTs, Q2 started with a spike in the metrics, which later declined. But the good news was that during the concluding weeks, ETH’s total NFT trade counts and trade volume in USD shot up considerably, reflecting ETH NFTs’ popularity. 

Source: Santiment

Ethereum’s weighted sentiment mostly remained on the negative side throughout the last quarter. This suggested that negative sentiment around the token prevailed in the market. Its social volume remained pretty high, which reflected its popularity in the crypto space.

Source: Santiment

Ethereum’s Q3 looks promising

A look at ETH’s press time performance suggested that Q3 might have a lot in store for investors. As of now, ETH has benefited from the bull rally, as its price has increased by more than 7% in the last seven days.

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At press time, it was trading at $1,995.36 with a market capitalization of over $239 billion.

However, bearish indicators prevailed. Notably, ETH’s net deposits on exchanges were high compared to the last seven days, suggesting that it was under selling pressure. The number of active addresses also declined, which by and large is a negative signal.