The Ethereum (ETH) network, which formally signalled its move from the Proof-of-Work (PoW) to the Proof-of-Stake (PoS) algorithm following the Merge update, is presently exhibiting some positive indicators after boosting the number of addresses added to the network, thereby ‘hinting at a breakout.’
Indeed, Ethereum had an increase in newly created addresses on October 8, with 135,780 new ETH addresses added to the network, the most since December 7, 2021, according to statistics obtained by Finbold on October 9 from the behaviour research platform Santiment.
The platform observes 11.1% more network growth than the next greatest of 2022 on January 3, and the highest since December 7, 2021. According to Santiment, ‘utility increases often anticipate possible asset breakouts.’
A spike in the number of unique addresses that transferred Ethereum for the first time shows that Ethereum may be gaining momentum in the market, recovering its footing after suffering considerable losses as a consequence of the Merge-related selling pressure.
Glassnode, a cryptocurrency monitoring website, said on October 10 that the number of new addresses being added to the Ethereum network had reached a record high. Even more revealing, the number of addresses holding more than one ETH grew, indicating that big investors were moving to the Ethereum network.
Accelerating network growth and a rapid rise in the number of addresses suggested that a growing number of people were getting interested in Ethereum.
However, despite the rising interest in Ethereum, the volume of transactions on the network has not increased much.
In reality, the overall number of Ethereum transactions dropped dramatically. In addition, at the time this piece was published, the total number of Ethereum transactions dipped below the 7-day moving average to a level not seen in 21 months.
As of October 6, Finbold recorded 8.46 million social mentions and 24.07 billion social engagements related to Ethereum after the Merge upgrade.
According to CoinMarketCap statistics, Ethereum is now trading at $1,312, down 0.39% in the past 24 hours but up 1.60% over the previous week, with total market size of $160 billion.
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