The past week marked significant developments in the Ethereum ecosystem, from shifting market dynamics and declining on-chain activity to critical technical progress and new financial products. As the ETH/BTC exchange ratio dipped to a 15-month low, investor sentiment and macro-level trends continue to shape the network’s trajectory. This report provides a comprehensive overview of price movements, on-chain metrics, ecosystem innovations, and key institutional moves.
Market Overview: ETH/BTC Ratio Falls to 2022 Lows
The ETH/BTC trading pair dropped to 0.05663, its lowest level since July 2022, signaling weakening relative strength of Ethereum against Bitcoin. Since the Merge in September 2023, the ratio has declined by nearly 30%, reflecting a shift in market allocation favoring BTC amid macro uncertainty.
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This trend may stem from Bitcoin’s growing perception as a digital gold amid global economic volatility, while Ethereum continues its transition toward scalable, yield-generating use cases through Layer 2s and staking.
In the short term, ETH price action appears range-bound with immediate support at $1,550** and resistance near **$1,600. Despite consolidation, broader adoption signals remain active beneath the surface.
On-Chain Activity and Secondary Market Trends
Spot Market Performance
According to OKX data, ETH dipped to $1,520** during the week, closing at **$1,555, a 3.7% weekly decline. This reflects cautious sentiment among traders amid limited catalysts for upward momentum.
Key on-chain metrics from Etherscan reveal a slight contraction in network activity:
- Blocks produced: 50,015 (down 0.13%)
- Weekly active addresses: 2,626,238 (down 0.7%)
- Block rewards: 2,235 ETH (down 16.1%)
- ETH burned: 5,523 ETH (down 23.8%)
Declining burn rates suggest reduced transactional demand, likely due to lower DeFi interaction and NFT activity.
Whale Activity and Large Transactions
Chainalysis data via OKLink shows a notable drop in large-volume transfers. Last week saw 1,199 transactions exceeding $100K in value—down 31.5% from the prior week’s 1,751. This indicates waning interest among large holders, possibly due to risk-off positioning.
Top Holder Distribution
As of this week:
- ETH 2.0 total staked: 27.75 million ETH (23.08% of supply)
- Exchange reserves: 8.59% (up 0.13%)
- DeFi protocols: 31.72% (up 0.33%)
- Top 1,000 non-exchange, non-DeFi addresses: 29.02% (down 0.26%)
- Other addresses: 30.67% (down 0.2%)
The growing share held by DeFi protocols underscores ongoing trust in decentralized financial infrastructure, even as whales reduce exposure.
DeFi Lockup Value
Per DeFiLlama, total value locked (TVL) across Ethereum-based protocols fell to **$20.11 billion**, down **3.8%** from $20.91 billion. The top three projects by TVL:
- Lido: $14.06 billion
- MakerDAO: $4.43 billion
- Aave: $4.02 billion
Despite the dip, Lido’s dominance highlights sustained demand for liquid staking solutions.
Core Developments: Dencun and EOF Progress
ACDE #172: Devnet #10 on the Horizon
The 172nd Ethereum Core Developer Execution (ACDE) call focused on progress toward the Dencun upgrade (Cancun-Deneb), particularly around EIP-4844 (proto-danksharding).
Key updates:
- Devnet #9 remains active with 93% validator participation.
- Remaining issues involve Geth/Teku and Erigon/Prysm client combinations.
- Flashbots is testing MEV-Boost relays and builders, though blob transactions are still being dropped—reasons under investigation.
- Devnet #10 is expected next week and will feature 330,000 active validators, simulating real-world scale.
- It will test the trusted setup file from the EIP-4844 ceremony.
- Post-launch adjustments include lowering validator churn limits from 5 to 4 per epoch due to high initial deposits/withdrawals.
Developers are holding off on public testnet upgrades (e.g., Goerli) until Devnet #10 results are analyzed.
EVM Object Format (EOF) Gains Momentum
Danno Ferrin, EOF advocate, emphasized that EOF should be a primary feature in the post-Dencun Prague/Electra upgrade. EOF introduces a standardized container format for EVM bytecode, aiming to improve contract safety, efficiency, and future-proofing.
While the spec isn’t finalized yet—and no client has implemented it—Ferrin expects testing to be “independent and relatively simple” since it only affects execution logic.
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Addressing Misconceptions: Are Whales Really Dumping ETH?
Recent claims based on Glassnode data suggested that ETH whales (holders of ≥1,000 ETH) have sold off ~20 million ETH since 2020. However, analysts argue this narrative is misleading.
Kunal Goel, senior research analyst at Messari, noted that such data fails to account for staking transfers—where large deposits to validator contracts are mistaken for sell-offs.
Similarly, André Dragosch of Deutsche Digital Assets pointed out that ETH in smart contracts has risen steadily. When including staked balances, the top 1% of addresses show no meaningful decline in holdings.
Thus, apparent whale exits may simply reflect migration into staking—not bearish sentiment.
Ecosystem Highlights
Tornado Cash Still Dominates Despite Sanctions
Arkham Intelligence reports that Tornado Cash remains the largest mixer on Ethereum despite U.S. Treasury sanctions since August 2022. Over the last 30 days:
- $77.35 million in assets were mixed on Ethereum mainnet.
- ETH is the most commonly anonymized asset.
- Total Value Locked (TVL) stands at **$187.9 million**, down over 60% from its peak of $700M in July 2021.
It operates across seven blockchains and supports ten cryptocurrencies.
Circle Launches Native USDC on Polygon PoS
Circle has deployed native USDC on Polygon PoS, eliminating reliance on bridged USDC.e tokens. Key implications:
- Developers can now mint USDC directly via Circle Mint and APIs.
- Starting November 10, Circle will discontinue support for bridged USDC deposits/withdrawals.
- Existing USDC.e will be renamed accordingly on explorers like PolygonScan.
- Users are warned not to send bridged USDC to Circle accounts post-deadline to avoid fund loss.
This move strengthens Polygon’s position as a scalable, compliant L2 environment.
Reserve Protocol Expands to Base
The decentralized stablecoin protocol Reserve has launched on Base, marking its first deployment outside Ethereum mainnet. Users can now create custom “RToken” assets—such as stablecoins or cost-of-living-indexed flatcoins—using an overcollateralized basket of ERC-20s.
Supported collateral includes major stablecoins, ETH, and WBTC, with yield generation opportunities via integrations with Compound, Aave, Curve, and others.
Reserve’s TVL on Ethereum stands at $24 million.
Ethereum Validation Queue Now Empty
Beaconcha.in data confirms that the validator queue has cleared—a stark contrast to early June when over 96,000 validators waited up to 45 days to activate. This improvement stems from increased network capacity and faster activation mechanics post-Merge.
Ethereum Foundation Sells 1,700 ETH
On October 9, the Ethereum Foundation swapped 1,700 ETH (~$2.76M) for USDC—the largest single transaction by the foundation in 2023. It currently holds approximately:
- 316,000 ETH
- 215,000 WETH
Such sales are typically for operational funding and do not indicate negative outlook.
Network Fee Income Hits Multi-Year Low
IntoTheBlock reports that Ethereum’s daily fee income has plunged 90% from May’s peak—the lowest since April 2020. While beneficial for users seeking cheap transactions, this trend impacts issuance economics:
- Lower burns mean new ETH issuance exceeds destruction.
- Over the past 30 days, net supply increased by 33,500 ETH (~$52M).
This inflationary pressure highlights the need for broader adoption and Layer 2 growth to sustain long-term deflationary mechanics.
Frequently Asked Questions (FAQ)
Q: Why is the ETH/BTC ratio falling?
A: The decline reflects stronger institutional and retail preference for Bitcoin amid macro uncertainty. Additionally, Ethereum’s transition to proof-of-stake hasn’t yet translated into proportional price momentum compared to BTC.
Q: Does low fee income hurt Ethereum?
A: Not necessarily. Low fees benefit users and dApp developers by reducing friction. However, sustained low burn rates may delay deflationary supply dynamics unless offset by increased usage or staking yields.
Q: Is ProShares’ new ETF bearish for Ethereum?
A: Not inherently. The launch of a short futures ETF (SETH) reflects market maturity and growing product diversity—it allows hedging but doesn’t drive price direction alone.
Q: What is the significance of Devnet #10?
A: It’s a critical stress test before Dencun activates on mainnet. With 330k validators and real blob transaction testing, it ensures network stability under high load conditions.
Q: Can I still use bridged USDC after November 10?
A: Yes—but not through Circle’s official minting portal or API. Native USDC is recommended for better security and compatibility on Polygon PoS.
Q: Why did whale counts appear to drop?
A: Many “lost” whale balances moved into staking contracts or DeFi protocols. Without adjusting for these transfers, raw address counts misrepresent actual selling pressure.
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