After suffering heavy losses due to the sell pressure that emerged from the Merge, it appears that Ethereum [ETH] has been getting back on its feet. According to new data, ETH witnessed a massive spike in terms of network growth, which could be a positive development for the altcoin.
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Here’s AMBCrypto’s Price Prediction for Ethereum for 2022-2023.
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Data from on-chain intelligence platform, Santiment revealed that the network growth witnessed a massive rise. Furthermore, the spike was the largest in terms of network growth since December 2021.
A growth in this metric indicated that the amount of new addresses that transferred Ethereum for the first time witnessed a growth. This implied that Ethereum was gaining traction.
Too much of goodness to digest here
According to Glassnode, a crypto analytics platform, the number of new addresses being added to the Ethereum network just reached a four-month high. Additionally, the number of addresses holding more than 1 ETH also observed growth, inferring that investors with deep pockets were moving to the Ethereum network.
The improvement in network growth and the spike in number of addresses indicated that more and more people were showing interest in Ethereum. However, despite the increasing interest in Ethereum, the transaction volume on the network did not witness much growth.
As can be observed from the graph below, Ethereum’s transaction volume witnessed a steep decline. Furthermore, at the time of writing, the Ethereum transaction volume reached a three-month low of 48,640 ETH.
Source: Glassnode
Along with the declining volume, the number of investors holding 0.01 coins reached a seven-month low, indicating that retail investors may not be the ones that were showing interest in Ethereum.
The lack of interest from investors could be attributed to Ethereum’s lack of activity on the social front. As can be observed from the chart below, Ethereum’s social volume remained flat throughout the month along with a declining weighted sentiment.
This implied that the crypto community had more negative things to say about ETH than positive.
Source: Santiment
However, the spike witnessed in the chart can be attributed to the hype around Ethereum’s Merge.
At the time of press, Ethereum was trading at $1,315.36 and was trading 0.87% lower in the last 24 hours. Additionally, ETH’s market cap depreciated by 0.8% and was responsible for 17.18% of the total crypto market share.
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