ETH Active Addresses Surpass 2018 Peak as Prices Soar

The number of unique active Ether addresses that are either senders or receivers rose to a record high of 7.94 million on Sunday, surpassing the previous peak of 7.14 million reached on Jan. 16, 2018.

ETH Active Addresses Surpass 2018 Peak as Prices Soar

Ether’s bull run appears to be backed by fundamentals, as active users of the ethereum network are booming along with the cryptocurrency’s price.

The number of unique active Ether addresses that are either senders or receivers rose to a record high of 7.94 million on Sunday, surpassing the previous peak of 7.14 million reached on Jan. 16, 2018, according to data provider Glassnode.

In the past three days alone, that number has increased by more than 100,000, bringing the year-to-date increase to 86 percent.

“The fundamentals of the ethereum network including …… transactions, active addresses, fee collection and many other metrics make ethereum’s fundamentals strong,” India-based cryptocurrency exchange BuyUcoin’s CEO Shivam Thakral said.

The number of active Ether addresses and daily trades bottomed out in early 2020 and has been rising since, signaling a potential bull market for Ether. “When there is more use of a cryptocurrency, there is more demand, which drives the price up,” Chainalysis economist Philip Gradwell told CoinDesk last year.

ETH, the native token of Ether, has responded positively to the network’s growth, rising a staggering 2,355 percent since the beginning of 2020. At press time, the cryptocurrency was trading above its record high of $4,100. According to CoinDesk 20, the price of ETH has doubled in the past two weeks alone.

At the time of writing, Bitcoin, the largest cryptocurrency by market cap, was currently trading near $58,200, up 100 percent year to date.

The network has been facing network congestion since the first quarter of the year and charges higher fees compared to competitors like Coin Smartchain.

However, the high fees have largely failed to deter users so far, as evidenced by the continued rise in the number of active addresses and transactions (which are also now at an all-time high). Analysts see this as a sign of real fundamental growth.

“Low-fee chains are more likely to fake activity than chains like ethereum and bitcoin,” said Alex Svanevik, CEO of blockchain data firm Nansen. “So when active addresses on ethereum hit an all-time high, that’s the real sign of organic growth.”

Arash Ghaemi, director of strategy at Two Prime Digital Assets, expects active user engagement to increase further as web search data shows that public interest in Ether is on the rise.

“Searches for ethereum are parabolic up while bitcoin searches are down/flat,” Ghaemi tweeted Monday. “As Google search interest rises, so do active ETH addresses, putting pressure on price increases.”

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/eth-active-addresses-surpass-2018-peak-as-prices-soar/
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