On-chain data shows that Ethereum’s adoption rate has reached a four-month high, which could positively impact the cryptocurrency’s price.
Ethereum network growth has been exponential lately
According to data from a chain analytics company SaintlyThe ETH blockchain has spawned a number of wallets recently. The metric of significance here is “Network Growth,” which tracks the total number of fresh addresses appearing on the network each day.
Naturally, an address is considered used when it makes its first transaction on the chain. Network Growth counts the daily number of such addresses that become lively for the first time.
When the value of this metric is high, it means that users have just opened a gigantic number of fresh addresses on the network. This may be due to the arrival of fresh investors to the market or the return of elderly ones who previously gave up on it.
This trend could also occur as existing users open fresh addresses for stronger privacy. Generally, all of these events would occur simultaneously when the metric registers a spike, so it can be assumed that some adoption is taking place on the network.
On the other hand, a low level of the indicator means that not many fresh addresses are being created on the network, which may be a sign of low interest in cryptocurrencies.
Here is a chart showing the growth trend of the Ethereum network over the past few months:
As you can see from the chart above, Ethereum network growth increased dramatically yesterday, with 126,210 fresh addresses appearing on the blockchain in 24 hours.
This latest value is the highest seen in over four months, indicating that the resource is attracting an exceptionally gigantic number of users.
Overall, adoption is bullish for any asset in the long term, as a broader user base can provide a stronger foundation for future price movements. However, in the brief term, spikes in Network Growth could take the coin’s price in either direction.
The chart shows that the spikes in the indicator coincided with some local peaks in August. These spikes were a sign of FOMO around price spikes, and excessive noise has never been positive for any asset, which could be the reason for the peaks.
This time, however, Network Growth’s rally came as Ethereum was falling. This surge in interest when the asset is underperforming could potentially aid fuel a rebound.
ETH Price
Ethereum has been struggling recently and its price is currently hovering below $2,280.
