- Vitalik to the rescue as the Ethereum network experiences noteworthy slowdown.
Address activity signals low demand for ETH as it continues to give up dominance.
As a seasoned researcher who has been closely following the crypto market for years, I can confidently say that the Ethereum blockchain seems to be experiencing a slowdown compared to its competitors like Solana. The declining activity on the network, as evidenced by the low number of large transactions and active addresses, is indeed concerning.
It seems that the Ethereum blockchain is going through a period of slower activity lately. Other blockchains such as Solana have managed to draw some attention away from Ethereum over the past few months.
This outcome that may have prompted action from its founder Vitalik Buterin.
As a researcher, I’ve noticed a shift in the dominance of the Ethereum network lately, with data indicating a decline. This change seems to have steered capital movement towards alternative networks like Solana, Bitcoin [BTC], and the Binance Smart Chain.
Unsurprisingly, Vitalik recently demonstrated more engagement on the X (formerly Twitter) platform.
It became quite noticeable from the last week of August onwards, as there was an increase in his posts – possibly an attempt to stimulate more engagement within the network.
It’s clear that the usage of the Ethereum network has been decreasing, as shown by the drop in the number of significant transactions. In fact, the network saw its lowest daily count of large transactions for the year 2015 during the month of August.
2,150 large transactions worth $100,000 or more were recorded this year, marking the smallest number of such transactions we’ve seen yet.
Ethereum addresses show similar sentiments
Address balances also painted an interesting picture. The number of zero balances opened September at the third-highest level in the last eight months.
Over the course of three days, there has been a significant increase starting from the 28th of August, going from approximately 85,000 addresses to more than 171,000 with zero balance. This represents nearly double the number of addresses in such a short period.
In comparison to July, there was a significant decrease in the number of active Ethereum addresses during August. To give you an idea, the Ethereum network saw more than 800,000 daily active addresses in July alone.
In 2024, we saw the peak of activity at this particular address, which is the most we’ve ever recorded. However, according to the most recent data, the number of active addresses has dropped back to around half a million.
Impact on ETH
As an analyst, I’ve observed a correlation between the decreasing enthusiasm within the Ethereum network and the recent price movements of Ether (ETH). Over the past four weeks, ETH seems to be consolidating or ‘accumulating’, suggesting that market participants might be stockpiling the cryptocurrency.
Read Ethereum’s [ETH] Price Prediction 2024–2025
Nevertheless, it’s worth mentioning that the asset has found it challenging to sustain uptrend, particularly following the appearance of a death cross configuration approximately two weeks back.
Right now, ETH is found at a past resistance point that could act as support, but an increase in accounts with no balance suggests there’s not much optimism among buyers. It’s uncertain if it will rebound again from this particular level.
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2024-09-02 20:08