Ethereum on-chain activity has declined. The DeFi segment feels the impact.

The pace of new ETH address registrations fell sharply in early September. The metric correlates with Ethereum’s price, according to analysts from Xangle.

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The chart below shows that the number of new addresses has reached a 90-day low.

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This, researchers say, is a sign of a market correction.

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“The number of new address-accounts has been steadily declining since May. This means that the number of new participants in the DeFi market is on the decline.”

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Experts noted that Ethereum’s price drop of 12% was accompanied by a 40% fall in the value of assets locked in DeFi protocols (TVL) from their peak levels.

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Currently, total TVL stands at $7.91 billion, though the figure recently approached the $10 billion mark.

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Data: DeFi Pulse.

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In the DeFi space, Uniswap leads, with Aave close behind.

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The decline in on-chain activity and the cooling of the DeFi space has been reflected in Ethereum’s transaction fees, with the average dropping from $15 to $2.58.

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Data: Blockchair.

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The chart shows that, at the time of writing, Ethereum’s average transaction fee is roughly the same as Bitcoin’s.

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Earlier ForkLog reported that DeFi tokens are gaining traction among major players interacting with centralized exchanges and OTC platforms.

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