Ethereum activity is doubled by record transactions
Ethereum network activity has seen a sharp increase in new users, with “retention of activity” nearly doubling in the past month, according to crypto on-chain analytics platform Glassnode.
Month-over-month “retention of activity” shows a significant increase in the new cohort, “showing an increase in interactive contacts for the first time in the last 30 days,” Glassnode reported on Thursday.
He added that “the movement will reflect an influx of new wallets connecting to the Ethereum network, rather than being driven solely by existing participants.”
New activity retention, or new network addresses, increased from more than 4 million to 8 million addresses this month.
Activity retention measures how much users stay active over time, meaning that users stick around and continue to use it instead of appearing once and then disappearing.
Daily transactions on Ethereum have reached a peak
Last year, the number of active addresses on the Ethereum network doubled from the 410,000 accounts registered at this time last year to more than 1 million on January 15, according to Etherscan.
Meanwhile, the number of daily transactions on Ethereum spiked to a high of 2.8 million on Thursday, marking a 125% increase since the same time last year.
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Macroeconomics outlet Milkway reported on Thursday that this is due to an explosion in use of the stablecoin on Ethereum, which is causing fees to fall.
“This is the result of Ethereum pushing execution to L2s while securing settlement at L1. This is what a scalable financial infrastructure really looks like,” he explained.
“About Optimism” with Ethereum.
Confidence and sentiment around Ethereum is improving. “There's a lot of optimism when you look at Ethereum,” Justin D'Anetan, head of research at Arctic Digital, told Cointelegraph.
“Recently, indicators have emerged that have been pushed into oversold territory and seem to point to much higher prices, with renewed capital inflows into ETFs, stablecoins and native crypto protocols,” he added.
According to LVRG Research Director Nick Rook, Ethereum's network activity has increased as daily transactions exceeded 2 million.
“These strong on-chain fundamentals, coupled with continued EFF inflows and growing ecosystem optimism, position ETH for a near-term breakout above current resistance levels as liquidity increases and institutional participation continues to increase, with recent expansion improvements accelerating rates and reducing gas fees,” he said.
All this added network activity and sentiment should be huge for blockchain tokens. “There's a lot of hype going on with ETH, and that could happen next week,” said Michael van de Pop, founder of MN Fund.
Ether (ETH) prices hit a two-month high of $3,400 on Wednesday, but retreated slightly to trade around $3,300 during morning trading on Friday morning.
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