Smart contract platforms have hit record levels of active addresses despite a recent price correction, a positive indicator for the asset class, as pointed out by analyst Jamie Coutts.
Referring to active address statistics from the analytics service Artemis, Coutts notes that the increase amidst the current price decline is a favorable sign.
“The daily active addresses metric for Smart Contract Platforms (SCP) has surged to an all-time high of 17 million, up from 5 million a year ago.
The total market capitalization has decreased by 35% since March, but it’s still up 63% compared to a year earlier.
This represents a healthy correction within a long-term bullish market.”
According to Artemis’ findings, the number of active addresses for Solana has been rapidly increasing since late 2023, surpassing those of Ethereum (ETH). Nevertheless, Ethereum continues to outperform Solana in stablecoin market capitalization, stablecoin transaction volume, total value locked (TVL), and other key metrics.
In a recent video update, Coutts mentions that market liquidity is beginning to rise, which could set the stage for Bitcoin (BTC) to experience a rally in the final four months of the year, a time when the leading cryptocurrency typically performs well.
“People in crypto often focus too much on the short-term. The factors that drive crypto in the long run include aspects like liquidity, which has genuinely improved…
When taking a broader perspective, the conditions appear to be favorable for a strong Q4. Historically, September has been a tough month for Bitcoin. However, Q4 is generally when Bitcoin sees robust performance. It may trade heavy from this point onwards. Unless there are significant escalations or unforeseen geopolitical occurrences, I anticipate Q4 will be a solid quarter.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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