Ethereum Addresses Plummet 43% in 3 Months

New Ethereum Addresses Drop Below 80K

On June 1, 2024, the Ethereum network recorded approximately 100,680 new addresses. This number rose dramatically by over 37.7%, peaking at 138,620 new addresses on June 27. However, the following months saw a steady decline in new addresses:

• On August 1, 2024, the count dropped to 87,360 new ETH addresses, a 37% decrease from the June peak.
• By September 25, 2024, the number had further plummeted to 78,390, marking a 43% drop since June 27 and a 23% fall from the beginning of September.

During this period, active addresses on the network also declined significantly. Total active addresses fell from 722,080 on June 27 to 615,180, representing a 15% decrease.

Factors Behind the Decline in New Addresses

Analysts have attributed the decline in Ethereum addresses to several factors. The launch of spot Ether ETFs in the United States has drawn investor interest away from purchasing ETH directly, leading many to trade through these ETFs instead. Additionally, Ethereum’s competitor, Solana, has seen a rise in new addresses, indicating a possible shift in consumer interest towards Solana’s new meme coins.

Price Surge Amid Whales Selling Assets

Despite the drop in wallet addresses, Ethereum’s price has climbed, currently sitting at $2,630. This represents a 10.68% increase from last week and a 15% rise year-to-date. However, this price surge has not deterred several large holders, or “whales,” from selling their ETH. For example:

• On September 23, a whale deposited over 3,510 ETH into Kraken.
• Another whale previously withdrew 150,000 ETH and transferred it to other exchanges.

The activity of these whales raises concerns among market observers. While some analysts believe that the price increase could continue, others warn that the significant sell-offs might hinder further price appreciation, especially if demand for ETH remains low.

Market Sentiment and Future Predictions

Market sentiment regarding Ethereum’s future remains mixed. Independent analyst Kingpin Crypto commented on the current market conditions, stating:

“ETH Weekly looks incredible; in terms of price, it is clearly in an area of demand. If the price can get back above $2,750, it is an absolute no-brainer to go all in on Ethereum, in my opinion.”

This sentiment highlights the potential for Ethereum’s price to rise further if it can surpass the $2,750 mark. However, the ongoing decline in new addresses could indicate underlying challenges that may affect long-term growth.

Conclusion

The recent drop in new Ethereum addresses, coupled with a price surge, paints a complex picture for the cryptocurrency. While Ethereum maintains a strong price trajectory, the decline in wallet addresses and the selling behavior of whales raise questions about future demand and market stability.

As the DeFi landscape continues to evolve, Ethereum’s ability to attract new users and retain existing ones will be crucial for its sustained growth. Investors and analysts alike will be closely monitoring these trends in the coming months to gauge the future direction of Ethereum and the broader cryptocurrency market.