Market sentiment regarding Ethereum (ETH) has shifted to a relatively bearish stance, primarily influenced by the cryptocurrency’s recent price fluctuations. This negative outlook is reflected in the significant drop of 43% in Ethereum’s new active addresses, highlighting diminished network activity and investor confidence.
Decrease in New Active Addresses on Ethereum
Data from The Block indicates considerable variations in Ethereum’s network activity, with new active addresses experiencing a sharp and unexpected decline over the past three months.
On June 27, new active addresses on the Ethereum network peaked at 138,620 but then fell sharply to around 89,000 in the initial weeks of July. Although the volume fluctuated between 80,000 and 95,000 in August, it rebounded to over 100,000 by the month’s end.
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Despite a notable increase in Ethereum’s price recently, new active addresses on its network plummeted to a low of 78,100 on September 24, reflecting a 23.43% decline. At present, the count of new active addresses on Ethereum’s network remains below 80,000, a decrease of over 44% over the past three months.
In comparison, on June 9, the total active addresses on the Ethereum network surged dramatically to 702,857, while the current count has fallen by 5.69%. Furthermore, on September 22, the total active address count dropped significantly to 574,073, marking an 18.32% decrease from the June 9 peak.
Typically, a drop in new active address totals on a crypto network denotes reduced user engagement, which can result in lower overall network activity and transaction volumes. This trend is corroborated by the information from IntoTheBlock, illustrating that the overall volume of large transactions on the Ethereum network increased to 2.91 million on July 5, but fell to 1.79 million by September 29, showing a 38.4% decline.
Despite the notable decrease in new active addresses on Ethereum, the market intelligence platform, Santiment has reported that activity on the Ethereum network is finally increasing. However, this uptick in activity corresponds with a significant rise in gas fees.
ETH Loses Its Leading Position in DEX Volume Rankings
On September 25, Ethereum lost its status as the leading cryptocurrency in terms of 24-hour Decentralized Exchange (DEX) volume. Solana (SOL) surpassed Ethereum, achieving a notable 39.77% increase in its DEX volume, which reached $1.123 billion.
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At that point, Ethereum’s DEX volume was around $1.118 billion following a modest 8.92% rise. Although Solana briefly overtook the spotlight, Ethereum quickly bounced back to regain its lead.
As of now, the cryptocurrency’s 24-hour DEX volume has increased by 11%, reaching $1.559 billion, as reported by DeFiLama. Meanwhile, Solana saw a larger increase of 32.94%, though its volume remains below Ethereum’s at $1.251 billion.
Featured image created with Dall.E, chart from Tradingview.com