Ethereum Network Growth And Utility Have Both Gone Up Recently
Recent data from on-chain analytics firm Santiment suggests that the Ethereum (ETH) blockchain has seen an increase in Daily Active Addresses and Network Growth. Daily Active Addresses track the number of unique addresses engaging in transaction activity on the blockchain each day, which can indicate the strength of network traffic. Network Growth measures the number of addresses making their first transaction on the blockchain, indicating new investors entering the market. The chart provided shows a consistent upward trend for both indicators, with 101,000 new addresses and 484,000 unique addresses making transactions daily.
Bitcoin’s Activity Contrasts with Ethereum’s Growth
In contrast to Ethereum’s increasing utility and growth, Glassnode’s weekly report reveals a decline in active entities on the Bitcoin blockchain. The chart demonstrates cyclical lows for Bitcoin’s active entities, suggesting that user growth has not kept pace with price appreciation. However, this is attributed to increased activity related to reusing Bitcoin addresses, resulting in a decrease in measured “active entities.”
ETH Price and Potential for Continuation
Despite recent price fluctuations that brought Ethereum down to around $2,300, the strong network activity suggests that there is potential for the rally to continue. The chart provided shows recent attempts at recovery for ETH.
Hot Take: Ethereum Shows Promise with Growing Network Activity
Ethereum’s recent increase in Daily Active Addresses and Network Growth indicates growing utility and interest in the cryptocurrency. This suggests that both existing users and fresh investors are actively participating on the network. In contrast, Bitcoin has experienced a decline in active entities due to increased address reuse. While Ethereum’s price has faced some volatility, its strong network activity provides hope for a potential continuation of its rally.
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