On-chain data shows a considerable amount of latest addresses have popped up on the Ethereum network recently, an indication that ETH adoption is happening.

Ethereum Network Growth Registered A Sharp Spike Recently

In a latest post on X, the on-chain analytics firm Santiment has discussed concerning the latest trend within the Network Growth for Ethereum. The “Network Growth” here refers to an indicator that keeps track of the full variety of addresses which are coming online on the ETH blockchain for the primary time.

An address is claimed to be ‘online’ or lively when it participates in some sort of transaction activity on the network, whether as a sender or receiver. Thus, the Network Growth measures the variety of addresses making their very first transfer.

When the worth of this indicator is high, it means the network is witnessing the creation of a lot of addresses. This sort of trend can arise when latest users join the chain or old ones who had sold earlier return.

A spike within the Network Growth may also naturally occur when existing users create multiple wallets for a purpose like privacy. Generally, all of those aspects are at play to some extent each time the indicator observes a rise, so some adoption of the cryptocurrency may very well be assumed to be going down.

Now, here is the chart shared by the analytics firm that shows the trend within the Ethereum Network Growth over the past six months:

The worth of the metric seems to have been quite high in recent days | Source: Santiment on X

As displayed within the above graph, the Ethereum Network Growth saw an enormous spike in the course of the weekend, implying a lot of latest addresses were generated on the ETH blockchain.

In total, the users created 206,290 addresses during this spike, which is the most important value for the indicator since October 2022, greater than two years ago.

Because the analytics firm notes,

The 27-month high in day by day wallet creation comes during a time when ETH crowd sentiment has veered particularly negative as other altcoins have outperformed it. Regardless, resulting from DeFi and staking options for crypto’s #2 market cap asset, Ethereum continues to be all the sector’s leader in total non-empty addresses.

Historically, adoption is something that has been constructive for cryptocurrencies, as a wider userbase can provide for a stronger foundation on which future price moves can thrive.

The potential bullish effects of adoption, nevertheless, often only turn out to be apparent in the long run. Thus, these latest addresses are unlikely to have any noticeable influence on the worth of Ethereum within the near future.

ETH Price

Ethereum, like the remaining of the cryptocurrency sector, has crashed in the course of the past day. After a drawdown of around 7%, ETH’s price is now trading under $3,100.

Looks like the worth of the coin has plummeted over the past day | Source: ETHUSDT on TradingView

Featured image from Dall-E, Santiment.net, chart from TradingView.com