Market sentiment towards Ethereum (ETH) he has turned relatively bearish, largely due to cryptocurrency recent price volatility. This negative sentiment is evident in Ethereum’s new active addresses, which have fallen by a staggering 43%, underlining the reduction in network activity and investor confidence.
New active addresses on Ethereum decline
Data from The Block is showing notable fluctuations in Ethereum Network Activityas the number of new active addresses has seen a sharp and unexpected decline over the past three months.
On June 27th, new active addresses on the Ethereum network it rose to 138,620 before falling sharply to around 89,000 in the first weeks of July. Although volume fluctuated between 80,000 and 95,000 in August, it soon climbed back above 100,000 by the end of the month.
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Despite Ethereum experiencing a significant increase in its price Recently, new active addresses on its network dropped to 78,100 on September 24, marking a 23.43% drop. Currently, the number of new active addresses in Ethereum Network is still below 80,000, reflecting a drop of more than 44% over the past three months.
Compared to June 9, when total active addresses on the Ethereum network have increased impressively to 702,857, the current number of addresses has increased decline by 5.69%. Additionally, on September 22, the total active address count dropped sharply to 574,073, highlighting an 18.32% drop from the previous high of June 9.
Typically, when a crypto network experiences a drop in new active address count, it indicates a decrease in user engagement, leading to a decline in overall network activity and transaction volume. This decrease can be observed in the data provided by IntoTheBlock, which shows that the total volume of large transactions on the Ethereum network rose to 2.91 million on July 5th, but fell to 1.79 million on September 29th, reflecting a 38.4% drop.
Despite the significant drop in new active addresses on Ethereum, market intelligence platform Santiment released that Ethereum network activity is finally increasing. However, this increase in network activity also coincides with a significant increase in gas fee levels.
ETH loses top spot in DEX volume rankings
On September 25, Ethereum lost its position as main cryptocurrency with the highest decentralized exchange (DEX) volume in 24 hours. Solana (SOL) it surpassed Ethereum to take first place with a 39.77% increase in its DEX volume, which rose to $1.123 billion.
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At the time, Ethereum’s DEX volume was approximately $1.118 billion, after recording a modest increase of 8.92%. Although Solana briefly stole the spotlight, Ethereum quickly recovered and has since maintained its leading position.
At the time of writing, the cryptocurrency’s 24-hour DEX volume has increased rose by 11%, reaching US$1.559 billion, according to DeFiLama. In contrast, Solana experienced a much larger increase of 32.94%, however, its volume is still below Ethereum at $1.251 billion.
Featured image created with Dall.E, chart from Tradingview.com