The recent surge in the price of Ethereum (ETH), the second-largest cryptocurrency by market cap, especially in October, has impacted the notable surge in network activity on the blockchain.
According to the on-chain data provided by Santiment, the Ethereum network address activity gained 48% after dipping in September.
Santiment tweeted, “Ethereum’s latest address activity is up about 48% since the number of unique ETH addresses bottomed out in late September…”
📈 #Ethereum's latest address activity is up about 48% since the number of unique $ETH addresses bottomed out in late September. Volume, social, volume, network profit/loss, and address activity are all covered in @santimentfeed's latest insight. 👇 https://t.co/jAfjizTdPy pic.twitter.com/Es0DWEWa6a
— Santiment (@santimentfeed) November 12, 2021
Over the same period, the price of Ethereum (ETH) hit a new record high, a 43% growth since October. The top cryptocurrency has managed to maintain the rally since dipping to about $1,780 on 21st July 2021.
The network activity potentially reflects Ethereum’s role in the crypto ecosystem as the dominant blockchain used for building thousands of decentralized applications (dApps).
Under the network, domains of decentralized finance (DeFi) and non-fungible tokens (NFTs) are among the fastest-growing. The two products have resulted in Ethereum recording increased capital inflow that translates to a higher market cap.
Moreover, the network has been undergoing major upgrades to make it faster and more energy-efficient. Some of the notable upgrades on the network include Ethereum’s EIP 1559 that was implemented in August. With the upgrades, the network burned a portion of fees paid to miners, reducing net issuance as a function of network usage.
The upgrades are also in line with the shift towards the proof-of-stake (PoS) protocol. Ahead of the transition, the network is likely experiencing an influx of new users who want to cash in on the staking.
Similarly, the Altair Beacon Chain upgrade emerged as a success, with 98.7 percent of the nodes being updated during the launch. The upgrade is widely viewed as a significant step towards the official launch of Ethereum 2.0.
Ethereum (ETH) in the Market
The crypto market is currently recovering after a major correction, which also affected the price of Ethereum. At the time of filing this report, ETH is trading at $4,318.74, with a relatively 8% price downtrend in the last 24 hours.