On March 13, according to The Block, CryptoQuant analysis indicated that Ethereum is facing an "adoption paradox"—network activity continues to hit record highs, yet the ETH price has fallen sharply, with a clear divergence between the two. Julio Moreno, the research director at CryptoQuant, stated that if the bear market persists, the ETH price could drop to around $1,500 by the end of the third quarter or the beginning of the fourth quarter of this year.

CryptoQuant data shows that last month, Ethereum's daily active addresses surpassed the peak seen during the 2021 bull market, and the volume of internal calls within smart contracts also reached an all-time high. The expansion of decentralized finance, stablecoins, and layer-2 networks are the main driving forces behind this growth. However, the ETH price has declined by more than 50% from the cycle's high, and the historically positive correlation between network activity and price has evidently broken down. Julio Moreno stated that for ETH to exit the bear market, two conditions must be met: a shift to net capital inflows becoming positive, and a reduction in inflows to exchanges.