Ethereum's value is fundamentally tied to its decentralized network and the active engagement of its users. One key metric to gauge this engagement is the number of unique active addresses on the network, which can serve as a valuable proxy for Ethereum's overall market demand and valuation.
The chart showcases the 14-day moving average of Ethereum Active Addresses, which represents the total number of distinct active addresses, including both senders and receivers of ETH transactions. Since late March 2024, this metric has seen a rapid decline, highlighting a drop in both user activity and transaction volumes.
This downward trend reflects a bearish market sentiment, with reduced demand and lower investor participation. For Ethereum to recover and potentially embark on a long-term sustainable rally, this trend must reverse. A resurgence in the number of active addresses would indicate growing interest and accumulation of Ethereum, signaling stronger demand and the possibility of a bullish market reversal.
Written by ShayanBTC
