The market sentiment towards Ethereum (ETH) has turned relatively bearish, largely due to the cryptocurrency’s recent price volatility. This negative sentiment is evident in Ethereum’s new active addresses, having crashed by a whopping 43%, underscoring reduced network activity and investor confidence.
New Active Addresses On Ethereum Decline
Data from The Block is showing notable fluctuations in Ethereum’s network activity, as the number of new active addresses has seen a sharp unexpected decline over the past three months.
On June 27, new active addresses on the Ethereum network surged to 138,620 before dropping drastically to around 89,000 in the first few weeks of July. While the volume fluctuated between 80,000 and 95,000 in August, it soon jumped back above 100,000 at the end of the month.
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Despite Ethereum experiencing a significant uptick in its price recently, the new active addresses on its network dropped as low as 78,100 on September 24, marking a 23.43% crash. Currently, the number of new active addresses on Ethereum’s network is still below 80,000, reflecting more than a 44% crash from the last three months.
Compared to June 9 when the total active addresses on the Ethereum network surged impressively to 702,857, the current number of addresses has declined by 5.69%. Moreover, on September 22, the total active address count fell drastically to 574,073, underscoring an 18.32% decrease from the previous June 9 high.
Typically, when a crypto network experiences a drop in its new active address count, it indicates a decrease in user engagement, leading to a decline in the overall network activity and transaction volume. This decrease can be seen in the data provided by IntoTheBlock, which shows that the total volume of large transactions on the Ethereum network rose to 2.91 million on July 5, but declined to 1.79 million on September 29, reflecting a 38.4% drop.
Despite the significant drop in new active addresses on Ethereum, market intelligence platform, Santiment has disclosed that the Ethereum network activity is finally picking up. However, this rise in network activity also coincides with a significant increase in gas fee levels.
ETH Loses Top Spot In DEX Volume Rankings
On September 25, Ethereum lost its position as the top cryptocurrency with the highest 24-hours Decentralized Exchange (DEX) volume. Solana (SOL) had outperformed Ethereum, claiming the top spot with a 39.77% increase in its DEX volume, which climbed to $1.123 billion.
At the time, Ethereum’s DEX volume was approximately $1.118 billion after recording a modest 8.92% surge. While Solana briefly stole the spotlight, Ethereum swiftly rebounded and has since held on to its leading position.
As of writing, the cryptocurrency’s 24-hour DEX volume has surged by 11%, reaching $1.559 billion, according to DeFiLama. In contrast, Solana experienced a much larger increase of 32.94%, however, its volume still sits below Ethereum’s at $1.251 billion.
Conclusion
The Ethereum network has been experiencing a significant decline in new active addresses, indicating a decrease in user engagement and overall network activity. This decline is evident in the recent drop in the number of new active addresses, which has crashed by a whopping 43%. Despite this, market intelligence platform Santiment has disclosed that the Ethereum network activity is finally picking up, although this rise in network activity coincides with a significant increase in gas fee levels.
FAQs
Q: What is the current trend in Ethereum’s new active addresses?
A: The number of new active addresses on Ethereum’s network has been declining, crashing by a whopping 43%.
Q: What is the reason for the decline in new active addresses?
A: The decline is attributed to the recent price volatility of Ethereum and a decrease in user engagement, leading to a decline in overall network activity and transaction volume.
Q: What is the current DEX volume of Ethereum?
A: As of writing, Ethereum’s 24-hour DEX volume has surged by 11%, reaching $1.559 billion.
Q: What is the current ranking of Ethereum in DEX volume?
A: Ethereum is currently holding its leading position in DEX volume, with a 24-hour volume of $1.559 billion, surpassing Solana’s volume of $1.251 billion.
