Ethereum's daily transactions rose to 1.22M, up from 1.1M in three months, signaling growing activity on the network.
Whale accumulation reduces selling pressure, while exchange inflows decline, reflecting long-term holder confidence in Ethereum.
Layer 2 solutions boost scalability but limit new Ethereum address growth, keeping demand for the settlement layer strong.
Ethereum has shown strong performance during Bitcoin’s recent surge, signaling increased activity across its blockchain. On-chain data highlights both opportunities and challenges for the cryptocurrency’s potential rally in the coming weeks.
https://twitter.com/intotheblock/status/1859558492211666999 Rising Transaction Volumes Reflect Increased Activity
Notably, Ethereum's daily transactions have seen a modest increase, averaging 1.22 million compared to 1.1 million three months ago. This growth, while significant, is not yet on par with previous bull market peaks. Transaction volumes are climbing steadily, suggesting heightened interest from both retail and institutional investors.
Large-scale holders, often referred to as whales, are accumulating Ethereum. This trend reduces the selling pressure and underscores a bullish sentiment among major market participants.
Layer 2 Solutions Reshape Network Dynamics
Moreover, the rise of Layer 2 scaling solutions, such as Base, is influencing Ethereum’s on-chain activity. These solutions improve scalability and efficiency but rely on Ethereum as their settlement layer. Consequently, demand for the network remains strong.
Despite this, new Ethereum addresses remain below levels seen during earlier market rallies. This trend indicates that while scalability solutions drive activity, they also shift some transactions away from Ethereum’s primary layer.
Additionally, several on-chain metrics suggest long-term holders are maintaining their positions. Exchange flows have shown a decrease in inflows, indicating that investors are opting for long-term storage rather than selling. The holding time of transacted coins remains high, signaling confidence among these holders. Meanwhile, short-term holders, often more speculative, are increasing, reflecting renewed retail interest.
The post Bitcoin Surges as On-Chain Data Points to Potential Ethereum Rally appeared first on Crypto News Land.
