The Ethereum (ETH) network, which officially marked its transition from the Proof-of-Work (PoW) to the Proof-of-Stake (PoS) algorithm after the Merge upgrade, is currently showing some encouraging signs after increasing the number of addresses added on the network, thus ‘hinting at a breakout.’
Indeed, Ethereum experienced a rise in new addresses established on October 8, with 135,780 new ETH addresses added to the network, the highest since December 7, 2021, according to data retrieved by Finbold from behavior analysis platform Santiment on October 9.
The platform notes 11.1% more network growth than the next highest of 2022 on January 3 and the highest since December 7, 2021. Santiment noted, ‘utility rises commonly foreshadow potential asset breakouts.’
Ethereum is potentially gaining traction in the market
A rise in the network growth by the number of unique addresses that transferred Ethereum for the first time indicates that Ethereum could be gaining traction in the market, regaining its footing after experiencing significant losses due to the selling pressure that resulted from the Merge.
The number of new addresses being added to the Ethereum network recently hit an all-time high, according to a cryptocurrency analytics platform, Glassnode, on October 10. Even more tellingly, the number of addresses with more than 1 ETH increased, suggesting that wealthy investors were shifting to the Ethereum network.
The acceleration in the network’s expansion and the sharp increase in the number of addresses indicated that an increasing number of individuals were becoming interested in Ethereum.
ETH transaction volume on the wane
However, despite the growing interest in Ethereum, there has not been a significant increase in the number of transactions on the network.
In fact, the total number of transactions conducted on Ethereum saw a steep drop. In addition, at the time this article was written, the total number of Ethereum transactions dropped to a level not seen in 21 months over the 7-day moving average.
At the same time, Finbold reported that Ethereum’s social activity has been moving downward after the Merge update, recording 8.46 million social mentions and 24.07 billion social engagements as of October 6.
Currently, Ethereum is trading at $1,312, down 0.39% in the last 24 hours but up 1.60% across the previous week, with a total market cap of $160 billion, according to CoinMarketCap data.
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