Recently, the number of active addresses on the Ethereum (ETH) network plummeted by 43%, which has attracted widespread attention in the market. Although the price of Ethereum is still rising, the sharp decrease in active addresses highlights the decline in network activity and investor confidence. Let's take a deeper look at the reasons behind this phenomenon.
The sharp drop in active addresses: a reflection of market sentiment
According to data from The Block, the number of new active addresses on Ethereum has fluctuated significantly over the past three months. On June 27, the number of new active addresses on the Ethereum network soared to 138,620, but then dropped sharply to 89,000 in July. Although it rebounded slightly in August, on September 24, the number fell again to 78,100, a drop of 23.43%.
The decline is mainly due to negative market sentiment towards Ethereum’s price fluctuations. Although Ethereum’s overall price has maintained an upward trend, the sharp decrease in active addresses indicates that user participation is declining, reflecting weakening investor confidence.
The number of active addresses in the entire network also dropped significantly
Not only has the number of new active addresses decreased, but the number of active addresses in the entire Ethereum network has also decreased significantly. Data shows that the number of active addresses reached 702,857 on June 9, but by September 22, the number had dropped to 574,073, a decrease of 18.32%. This trend clearly shows that the overall user activity of the Ethereum network is decreasing significantly.
Trading volume has dropped significantly
The decline in transaction volume is also worrying. According to data from IntoTheBlock, the total number of large transactions on the Ethereum network fell from 2.91 million on July 5 to 1.79 million on September 29, a drop of 38.4%. This means that users' transaction activity has weakened significantly and the overall utilization of the network is declining.
Solana DEX transaction volume surpasses Ethereum
Not only that, Ethereum is also facing competitive pressure in the decentralized exchange (DEX) field. On September 25, Solana (SOL)'s DEX trading volume surpassed Ethereum and became the cryptocurrency with the highest 24-hour trading volume. Although this phenomenon was only short-lived, it also highlighted the challenges Ethereum faces in the highly competitive crypto market.
What to look forward to next
Although Ethereum’s active addresses and transaction volume have declined significantly recently, data provided by market analysis platform Santiment shows that Ethereum’s network activity is gradually picking up. However, this has also brought about an increase in Ethereum gas fees, which may further affect users’ willingness to trade.
In general, the plunge in Ethereum's active addresses reflects the low market sentiment and the decline in user network participation. In the future, how to cope with competition from other blockchain networks and how to maintain user activity will be key issues that Ethereum needs to solve. Investors should pay close attention to market dynamics and adjust their strategies to cope with network changes.
Pay attention to market trends and seize every potential opportunity!
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