While the global cryptocurrency market has had a hard few days, with the market capitalization recently dipping below the $2 trillion level reached in late March, the on-chain activity of Ethereum (ETH), the second-largest cryptocurrency by value, has also decreased.
Indeed, the number of Ethereum blockchain’s active unique addresses has declined by 9.84 percent during the previous seven days.
Notably, this percentage is larger than that of Binance Smart Chain (BSC), which lost 8.27 percent last week despite having more active addresses overall, according to statistics released on April 11 by the cryptocurrency analytics site Nansen.
At the time of writing, there were 1.65 million active crypto wallets on the Ethereum network. This indicates that around 1.81 million addresses were active on the network a week ago, either as senders or receivers in successful transactions.
Among the examined L1/L2 networks, only Fantom, Arbitrum, and Optimism fared worse than Ethereum in this aspect. Celo and Ronin both saw an increase in on-chain activity, up 15.14 percent and 3.92 percent, respectively, during the course of the week.
What is the reason for the decrease in the number of active addresses?
One possible explanation for the decline in the number of active addresses is the caution caused by the price crash that has affected the majority of major digital assets over the last several days.
According to statistics gathered from CoinMarketCap, Ethereum fell 12.6 percent during the last week and 6.59 percent in the last 24 hours.
At the time of publication, the second-largest cryptocurrency in terms of market value was trading at $3,030. By contrast, it was $3,467 seven days ago.
Despite the market’s present bearishness, there is no shortage of hope. Specifically, Galaxy Digital Trading’s co-head claimed that Ethereum may overtake Bitcoin in three years, citing rising institutional demand and ETH 2.0 as catalysts.
Meanwhile, the CoinMarketCap crypto community expects that Ethereum will trade as high as $3,769 by the end of April, based on previous data.
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