- Ethereum has surpassed 5 million active addresses across its mainnet and Layer 2 networks.
- Despite this surge in network activity, its price remains stable, trading around $2,642.
As a seasoned researcher with years of experience in the ever-evolving world of blockchain and cryptocurrencies, I find myself intrigued by Ethereum’s recent milestone of surpassing 5 million active addresses across its mainnet and Layer 2 networks. This growth is indeed a testament to Ethereum’s dominance in the blockchain space, yet it raises an interesting question: has Ethereum’s price responded to this surge in network activity?
Data indicates that Ethereum [ETH] is leading the charge among Layer 1 (L1) and Layer 2 (L2) platforms regarding active addresses. Over 5 million active addresses are now recorded across the Ethereum mainnet and its L2 networks as of October 2024.
The increase in active addresses suggests that Ethereum is becoming more influential within the blockchain sector. Yet, an essential point to consider is whether Ethereum’s price has risen alongside this boost in network activity, or if there’s a discrepancy between its usage and market performance.
Ethereum sees active address dominance
A study of the number of active Ethereum addresses on IntoTheBlock indicates that it is surpassing other networks in terms of growth. The findings demonstrate that Ethereum currently holds a leading role, as there has been a significant increase in daily active addresses not only on its primary network but also on layer 2 platforms such as Arbitrum and Optimism.
Over the past period, a significant increase in activity has caused the proportion of active Ethereum addresses to surpass 40%. This surge is primarily attributed to several factors, with the advancement and growing popularity of Layer-2 (L2) networks significantly contributing to Ethereum’s increased network utilization.
Furthermore, the data indicates a steady increase in active addresses during the year 2024, noticeably peaking in early October.
Has Ethereum’s price reacted to this network growth?
Even though there’s been a substantial rise in the number of active Ethereum addresses, its price fluctuations have been rather small. As we stand on October 22, 2024, Ethereum is being traded at $2,642, representing a minor decrease of 0.85% over the past day.
The cost has been bouncing between approximately $2,600 and $2,670, often stabilizing around the 50-day moving average price of about $2,485.
Source; TradingView
Although the surge in operational Ethereum addresses shows its expanding practicality, the cost hasn’t fully captured this heightened network action yet. The Relative Strength Index (RSI) presently stands at 57.19, suggesting a neutral market movement without being excessively overbought or oversold.
Furthermore, the increase in Average True Range (ATR) to 96.16 indicates a slight rise in market volatility, though it’s not substantial enough to predict significant price fluctuations.
It seems that while Ethereum’s use is increasing, it appears that outside market influences and overall investor mood have more impact on its price movements.
ETH price still playing catch-up
The increase in active addresses underscores Ethereum’s expanding ecosystem and growing demand.
Should Ethereum sustain its current pace, driven by the expanding use of Layer 2 platforms and robust staking engagement (currently over 34 million ETH locked in), there’s a possibility that its market value could align with its on-chain development progress.
Read Ethereum (ETH) Price Prediction 2024-25
Even though there are encouraging signs, the cost of ETH continues to show caution. The technical indicators are showing a mix of signals, implying that while ETH’s network is thriving, the market might be holding out for more powerful triggers to boost the price.
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2024-10-22 16:08