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Market sentiment towards Ethereum (ETH) has turned relatively bearish, largely due to cryptocurrency recent price volatility. This negative sentiment is evident in Ethereum’s new active addresses, which collapsed by 43%, highlighting reduced network activity and investor confidence.
New active addresses on Ethereum decline
Data of The Block shows notable fluctuations in Ethereum network activityas the number of new active addresses has seen an unexpected sharp decline over the past three months.
June 27, new active addresses on the Ethereum network jumped to 138,620 before dropping significantly to around 89,000 in the first weeks of July. While volume hovered between 80,000 and 95,000 in August, it quickly rose back above 100,000 by the end of the month.
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Although Ethereum is experiencing a significant increase in its price recently, new active addresses on its network fell to 78,100 on September 24, a crash of 23.43%. Currently, the number of new active addresses on The Ethereum network is still below 80,000, reflecting a collapse of more than 44% over the past three months.
Compared to June 9, when total assets addresses on the Ethereum network jumped impressively at 702,857, the current number of addresses has denied of 5.69%. Additionally, on September 22, the total number of active addresses dropped significantly to 574,073, highlighting an 18.32% decline from the previous high on June 9.
Typically, when a crypto network experiences a drop in its new active addresses, it indicates a decrease in user engagement, leading to a decline in overall network activity and transaction volume. This reduction can be seen in data provided by IntoTheBlock, which shows that the total large transaction volume on the Ethereum network rose to 2.91 million on July 5, but decreased to 1.79 million on September 29, reflecting a 38.4% decline.
Despite the significant drop in new active addresses on Ethereum, a market intelligence platform, Santiment has disclosed that activity on the Ethereum network finally resumes. However, this increase in network activity also coincides with a significant increase in the level of gas fees.
ETH loses first place in DEX volume ranking
September 25, Ethereum lost his position as best cryptocurrency with the highest 24-hour decentralized exchange (DEX) volume. Solana (SOL) had outperformed Ethereum, taking the top spot with a 39.77% increase in its DEX volume, which soared to $1.123 billion.
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At the time, Ethereum’s DEX volume stood at around $1.118 billion after seeing a modest rise of 8.92%. While Solana briefly stole the spotlight, Ethereum quickly bounced back and has since maintained its leadership position.
At the time of writing, the cryptocurrency’s 24-hour DEX volume has jumped by 11%, reaching $1.559 billion, according to DeFiLama. In contrast, Solana saw a much larger increase of 32.94%, but its volume remains lower than Ethereum at $1.251 billion.
Featured image created with Dall.E, chart from Tradingview.com
