On-chain data shows the Ethereum adoption rate has hit a four-month high, which could be bullish for the cryptocurrency’s price.
Ethereum Network Growth Has Shot Up Recently
According to data from the on-chain analytics firm, the ETH blockchain has recently created many wallets. The indicator of relevance here is the “Network Growth,” which keeps track of the total number of new addresses appearing on the network daily.
Naturally, an address is considered to have been used when it made its first transaction on the chain. The Network Growth counts the daily number of such addresses that are becoming active for the first time.
When the value of this metric is high, it means the users have just opened up a large amount of new addresses on the network. This could be because of new investors coming into the market or old ones who had left earlier returning to it.
The trend can also occur when existing users open fresh addresses for stronger privacy. In general, all of these would happen at once whenever the metric registers a spike, so some adoption could be assumed to be taking place on the net.
On the other hand, the low indicator implies that not many new addresses are being created on the network, a potential sign that interest in cryptocurrency is low.
Now, here is a chart that shows the trend in the Ethereum Network Growth over the last few months:
Looks like the value of the metric has been quite high in recent days | Source:
As displayed in the above graph, the Ethereum Network Growth observed a sharp spike yesterday, as 126,210 new addresses appeared on the blockchain within 24 hours.
This latest value is the largest indicator observed in more than four months, suggesting that the asset attracts an extraordinary number of users.
Generally, adoption is bullish for any asset in the long term, as a wider user base can provide a stronger foundation for future price moves to grow. In the short term, though, spikes in the Network Growth can take the coin’s price in either direction.
The graph shows that spikes in the indicator coincided with some local tops in August. These spikes were a sign of FOMO around the price surges, and excessive hype has never been positive for any asset, which may be why the tops occurred.
This time around, however, the increase in the Network Growth has come as Ethereum has been going down instead. This surge in interest while the asset isn’t doing so well could potentially help fuel a rebound.
ETH Price
Ethereum has struggled recently, as its price is currently under the $2,280 mark.
Looks like the price of the coin has gone down over the last few days | Source:
Featured image from Dall-E, Santiment.net, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
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