As the global cryptocurrency market is going through a rough few days, with the market capitalization recently falling below the $2 trillion it reclaimed in late March, the on-chain activity of the second-largest crypto by value, Ethereum (ETH) is also recording a drop, as well.
As a matter of fact, the number of active unique addresses on the Ethereum blockchain has decreased by 9.84% in the last seven days.
Notably, this percentage is higher than that of Binance Smart Chain (BSC), which has recorded a loss of 8.27% during the previous week despite it having more active addresses overall, according to the data published by the crypto analytics platform Nansen on April 11.
At the time of publication, the number of active crypto wallets on the Ethereum blockchain was 1.65 million. This means that a week ago, around 1.81 million addresses actively participated on the network, either as a sender or a receiver in successful transactions.
In this regard, only Fantom, Arbitrum, and Optimism performed worse than Ethereum among the observed L1/L2 networks. Interestingly, Celo and Ronin measured an increase in on-chain activity, up 15.14% and 3.92% across the week, respectively.
What is behind the lower number of active addresses?
One of the reasons for the decrease in the number of active addresses could be hesitance due to the price crash that has struck most of the major digital assets over the past several days.
For Ethereum, this crash was 12.6% over the week and 6.59% compared to 24 hours before, according to the data retrieved from CoinMarketCap.
At press time, the second-largest cryptocurrency by market capitalization traded at $3,030. By comparison, its price seven days ago was $3,467.
However, despite the currently bearish market, there’s no lack of optimism.
Namely, Galaxy Digital Trading co-head has predicted that Ethereum could flip Bitcoin in three years, citing increased institutional demand for it, as well as ETH 2.0 as its driving forces.
Meanwhile, the CoinMarketCap crypto community, with 80% historical accuracy, predicts Ethereum to trade as high as $3,769 by the end of April.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.