The chain data shows a large quantity of new addresses recently appeared on the Ethereum network, a sign that the adoption of the ETH occurs.
The growth of the Ethereum network recently recorded a clear point
In a new article on X, the Santiment Channel Analysis Society discussed the latest trend in network growth for Ethereum. “Network growth” here refers to an indicator that maintains the total number of addresses that are online on the ETH blockchain for the first time.
An address would be “online” or active when it participates in a kind of transaction activity on the network, whether as a sender or receiver. Thus, network growth measures the number of addresses making their very first transfer.
When the value of this indicator is high, this means that the network attends the creation of a large number of addresses. This type of trend can occur when new users join the chain or the old ones who had sold a return earlier.
A peak in network growth can also occur naturally when existing users create several portfolios for a purpose such as confidentiality. In general, all these factors are at stake to a certain extent whenever the indicator observes an increase, therefore a certain adoption of the cryptocurrency could be supposed to take place.
Now here is the graph shared by the analytical company which shows the trend of growth of the Ethereum network in the past six months:
The value of the metric seems to have been quite high in recent days | Source: Santiment on X
As displayed in the above graph, the growth of the Ethereum network experienced a huge peak during the weekend, which implies that a large number of new addresses have been generated on the ETH blockchain.
In total, users created 206,290 addresses during this point, which is the greatest value for the indicator since October 2022, more than two years ago.
As the analysis company notes,
The daily creation of 27 -month portfolio occurs at a time when ETH CRowd’s feeling was particularly negative because other altcoins have surpassed it. Be that as it may, due to the challenges of challenge and implementation of the assets with Crypto market capitalization, Ethereum is still the leader of the sector in total in total non -empty addresses.
Historically, adoption is something that has been constructive for cryptocurrencies, because a wider user base can provide a stronger basis on which future price movements can prosper.
The potential optimistic effects of adoption, however, generally become apparent in the long term. Thus, it is unlikely that these new addresses have a notable influence on the price of Ethereum in the near future.
Ethn price
Ethereum, like the rest of the cryptocurrency sector, crashed during the last day. After a withdrawal of around 7%, the price of ETH is now negotiated less than $ 3,100.
Looks like the price of the coin has plummeted over the past day | Source: ETHUSDT on TradingView
Dall-e star image, Santiment.net, TradingView.com graphic
