- The network growth of ETH has reached its highest level in the past four months. Here, “network growth” refers to a metric that tracks the total number of new addresses created on the Ethereum blockchain.
- New addresses can be likened to new users joining the chain, so this type of trend may be an indication of the cryptocurrency currently experiencing high adoption rates.
- Likely, general investors have witnessed the rally that led to this consolidation period and believe that ETH may gain momentum again in the future.
According to the latest data, Ethereum’s network growth has reached its highest level in the past four months, with 550,800 new addresses created just last week.
Ethereum’s Network Growth Shows an Increase
According to data from on-chain analytics firm Santiment, ETH’s network growth has reached its highest level in the past four months. Here, “network growth” refers to a metric that tracks the total number of new addresses created on the Ethereum blockchain.
When the value of this metric is high, it signifies a significant number of new addresses entering the network. New addresses can be likened to new users joining the chain, so this type of trend may be an indication of the cryptocurrency currently experiencing high adoption rates.
On the other hand, if the indicator points to low values, it may indicate that not many new investors are joining the network, as not many new ETH addresses are being created. This type of trend may indicate that the asset is not currently perceived as attractive by the general public.
The chart displaying the trend in Ethereum’s network growth over the past few months:
As shown in the above chart, Ethereum’s network growth has been trending upward recently, indicating that addresses are currently being created at a faster pace.
ETH Price Stagnates While Network Growth Continues to Accelerate
In general, during periods of increased adoption, investors tend to find it exciting due to the price volatility, and therefore, the network growth indicator can record an increase.
However, recently, the asset’s price has mostly been stagnating below the $1,900 level, making it interesting that the indicator is still rising. It is likely that general investors have witnessed the rally that led to this consolidation period and believe that it may gain momentum again in the future.
Just last week, this metric reached a consolidated value of 550,800, meaning that 550,800 new addresses were created on the Ethereum network during this period.
Typically, adoption can have a constructive effect on the price of a cryptocurrency as it demonstrates increasing interest in the asset and often comes with an influx of capital. However, the impact of this growth on the network is not immediate; its effect on the cryptocurrency’s market value can be seen in the long run.
Nevertheless, with the slowdown of the rally and the acceleration of adoption, it can be seen as a positive sign for those hoping for a resurgence in price increases, indicating that interest in the asset has not diminished yet.
