Ethereum, the premier smart contract platform in the crypto sphere, has demonstrated a robust recovery, bouncing back from a 10% drop in value on January 22. Recent data from 21milyon.com highlights a 4.74% growth in the past week, signaling a positive trend for the second-largest cryptocurrency.
Increasing Number of Addresses on Ethereum
Accompanying Ethereum’s price recovery is a surge in on-chain activity, with an average of 484,000 unique addresses engaging with the network daily. This uptick is further evidenced by the creation of approximately 101,000 new addresses each day, marking a 28% increase in daily new address creation compared to three months prior. Transaction numbers have also risen by 10%, indicating a correlation between Ethereum’s market value and its network utility.
Ethereum’s network value to transaction volume ratio is on a decline, suggesting that the cryptocurrency might be undervalued. This presents a bullish outlook, as the decreasing ratio coincides with a strong price uptrend. Despite this, the derivatives market remains relatively unaffected by the spot price increases.
Analysis of Coinglass data reveals a 5.2% decrease in Ethereum’s Open Interest (OI) compared to the previous week. However, market sentiment is shifting from neutral to greed, indicating potential changes ahead. Experts speculate that the Fear of Missing Out (FOMO) could drive further Ethereum purchases in the near future.
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