Recent on-chain analysis indicates that a significant number of new addresses have emerged on the Ethereum network, highlighting a rise in ETH adoption.
Recent Spike in Ethereum Network Growth
According to a recent update from Santiment, an analytics company, there has been a notable increase in Ethereum’s Network Growth. This metric monitors the number of addresses that are being created on the ETH blockchain for the first time.
Addresses become ‘active’ when they engage in transactions on the network, whether sending or receiving. Therefore, Network Growth tracks the number of addresses initiating their first transfer.
A high value in this metric indicates a surge in address creation, which may result from new users joining the network or previous users returning after selling their assets. Additionally, a rise in Network Growth can happen when current users create multiple wallets for privacy reasons. These dynamics suggest that there is a degree of cryptocurrency adoption occurring.
Below is a chart from the analytics firm showing the Ethereum Network Growth trend over the last six months:
The chart illustrates a significant increase in Ethereum Network Growth over the weekend, indicating that many new addresses were registered on the ETH blockchain.
During this surge, a total of 206,290 addresses were created, marking the highest figure for this metric since October 2022, which is over two years.
As noted by the analytics firm,
The recent peak in daily wallet creations coincides with a time of particularly negative sentiment towards ETH, as other altcoins have performed better. Still, due to decentralized finance (DeFi) and staking options available for Ethereum, it remains the leader in the number of non-empty addresses across the entire crypto sector.
Historically, greater adoption has benefited cryptocurrencies by providing a more robust user base that can support future price increases.
However, the positive impacts of this adoption are typically realized over the long term, suggesting that the influx of new addresses will likely not affect Ethereum’s price in the immediate future.
Current ETH Price
The price of Ethereum has followed the general trend of the cryptocurrency market and has experienced a drop in the past 24 hours. ETH is now trading below $3,100 after a decline of approximately 7%.