The number of daily active addresses on Ethereum reached its highest peak in a year, exceeding 841,100 addresses.
This strong growth was recorded before Ethereum's price dropped below $3,500, reflecting the high level of cryptocurrency network activity despite price fluctuations.
- The number of daily active addresses on Ethereum reached its highest level in the past 12 months.
- Network activity remains high despite the downward trend of ETH price.
- Data analyzed from Santiment and published by on-chain expert Ali.
Why did the number of Ethereum's daily active addresses reach a peak in a year?
According to Santiment's data, the number of active addresses on Ethereum increased to 841,100 addresses, the highest level recorded in the past 12 months. This surge reflects a strong increase in network activity, including transactions, interactions with decentralized applications, and Smart Contract operations.
This increase occurred just before ETH's price dropped below $3,500, indicating that user and developer activity on the network is not solely based on price fluctuations but also on various technical and practical application motivations.
What is the significance of increasing active addresses on the Ethereum network for the cryptocurrency market?
The increase in active addresses on Ethereum is often seen as a positive sign of the network's health and usage. High activity levels help increase liquidity, enhance interaction capabilities, and promote the development of DeFi, Non-Fungible Token, and other ecosystems.
However, this phenomenon also raises questions about the real motivations behind the increase in address numbers, which could include increased usage or automated network activities. Therefore, deeper analysis is necessary to assess the long-term impact on Ethereum's value and stability.
"The peak in active addresses while ETH price drops shows that the Ethereum network maintains a strong attraction in terms of user applications and interactions."
Ali, On-chain Analyst, 02/08/2023
How does data from Santiment help accurately track Ethereum network activity?
Santiment is an in-depth on-chain data analysis platform that provides accurate metrics about user activity and on-chain Tokens on the Ethereum blockchain. Data such as the number of active addresses, Token flows, and related indicators help experts and investors accurately assess the network's health.
Using data from Santiment provides a comprehensive view of the network's short-term and long-term trends, thereby enhancing the ability to make investment or project development decisions.
Frequently Asked Questions
Is the increase in active addresses on Ethereum directly related to ETH price?
Are on-chain data reliable for predicting cryptocurrency price trends?
On-chain data provides insights into network activity and user behavior, supporting fundamental analysis, but needs to be combined with other methods for accurate forecasting.
How can you verify the accuracy of Santiment's data?
Santiment is a reputable entity in on-chain analysis, using methods of collecting and processing data directly from the blockchain and trusted by many professional investors.
How long can the increase in active addresses continue?
This trend depends on application development, market, and technical factors. Surveys suggest the upward trend can be maintained if the Ethereum network continues to innovate and gain widespread acceptance.
How does information about active addresses affect DeFi projects?
These figures reflect the overall usage of the Ethereum network, directly impacting liquidity and interaction levels in DeFi projects on this platform.
