Ethereum is calling the attention of the market in recent days in terms of price, as its main token, ether, has reached a new high of about $ 2,150. While this may be surprising to some, on-chain data reveals the rapid adoption of the network behind the second largest cryptocurrency with new registrations for active addresses.
Network activity behind the historical record?
The date was March 24, and a correction across the crypto market swept billions of market capitalization. The price of ether was no exception, as ETH fell to just over $ 1,520. However, the situation changed dramatically in the days that followed, and ETH started an impressive rise. After several consecutive occasions of closing with daily green candles, the asset price regained US $ 2,000 (registering gains of around 31.6%) and continued to rise. On-chain data presented by two analytical resource companies, namely Santiment and Glassnode, show that this remarkable price increase could be expected, to some extent, due to the rapid increase in network activity.
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Santiment provided a broader perspective on three bullish developments. The company said the number of newly created daily addresses and the active address have skyrocketed recently, which the company has repeatedly described in the past, which could lead to a price increase for the underlying asset. At the same time, ETH deposits on cryptocurrency exchanges have declined in recent weeks, suggesting that there is little selling pressure for the asset.Increase in network activity and drop in deposits at brokerage firms. Source: Santiment and CryptoPotato.
Other data confirm
Glassnode took a closer look at Ethereum to exemplify network activity. Retail investors have shown significant demand over the second largest crypto in the past few months, as the number of non-zero ETH addresses has set new records. And this trend has only intensified, according to Glassnode, as these portfolios exceeded the number of 56.5 million. The 7-day moving average of the number of newly created addresses also reached a monthly increase of more than 6,300.Number of ETH addresses with any balance. Source: Glassnode and CryptoPotato. While Santiment noted that deposits on exchanges decreased, Glassnode showed how withdrawals increased in the same period. The number of transfers from scholarships to personal wallets reached a monthly high of almost 1,400.Number of ETH withdrawals from brokerages. Source: Glassnode and CryptoPotato. In your opinion, which data was more relevant for Ethereum (ETH) to reach its highest price in history? Leave your comment below.