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NFT Rise: Disrupts ETH Price and Market Performance

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ETH price dropped 56 from the top but the number of active addresses 1
18
May
  • The number of active Ethereum addresses is not too correlated to the price of Ethereum (ETH).
  • CryptoQuant showed ETH dropped to approximately 56% from its ATH, while the active Ethereum addresses are only down by 7 %.
  • The continued rise in interest in NFTs seems to be the reason behind the disconnect of the two figures.

According to recent data, the number of active Ethereum addresses is not too correlated to the price of Ethereum (ETH).

Data from the crypto analytics firm, CryptoQuant, shows that the price of ETH has dropped approximately 56% from it’s all time high (ATH). However, the number of active Ethereum addresses is only down by 7 %, according to the analytics firm. As things stand, the number of active Ethereum addresses stands at around 551,705.

Ki Young Ju, a Twitter crypto analyst with a fairly large following, highlighted the fact that there seems to be a disconnect between the price movement of ETH since its all time high and the number of daily active Ethereum users. He stated in his latest post that “These degens don’t care about ETH price but ape into Defi, NFT, DAO, and GameFi projects.”

One possible reason for the disconnect between the two figures is the rise in interest in non-fungible tokens (NFTs). Despite prices in the market declining for the last couple of months, the enthusiasm associated with NFT-related activities has grown consistently.

The number of NFT collections has risen to 83,000, according to data collected by IntoTheBlock. The current number of Ethereum-based NFT collections has risen to 83,000, up from 15,540 last year.

Furthermore, data from the Financial Times and Chainalysis shows that there are approximately 360,000 NFT owners that hold around $2.7 million in NFTs collectively. The continued rise in NFT interest seems to be the reason for the number of daily active Ethereum addresses remaining relatively constant in this bear market.

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