Ethereum’s network activity has been cooling off lately, with a significant drop in new active addresses. This suggests that fewer people are using the network, which could be a sign of waning interest or investor confidence.
Fewer New Users Joining the Party
The number of new Ethereum addresses has plummeted by over 43% in the last three months. While there were over 138,000 new addresses in June, that number has dropped to below 80,000 in September. This decline is particularly notable considering Ethereum’s recent price surge.
Overall Network Activity Also Down
The drop in new addresses isn’t the only sign of a slowdown. The total number of active Ethereum addresses has also declined, indicating that even existing users are less active on the network. This is reflected in the volume of large transactions, which has fallen by nearly 40% since July.
Gas Fees Are Rising
While network activity is picking up slightly, according to Santiment, this is accompanied by a rise in gas fees. This means that users are paying more to make transactions on the Ethereum network.
Solana Steals the DEX Spotlight
For a brief moment, Solana surpassed Ethereum in terms of 24-hour Decentralized Exchange (DEX) volume. While Ethereum has since regained its top spot, this shows that other networks are gaining traction.
What Does This Mean for Ethereum?
The decline in active addresses is a cause for concern, but it’s important to remember that the crypto market is volatile. It’s possible that this is just a temporary dip and that Ethereum will regain its momentum. However, it’s worth keeping an eye on these trends to see if they signal a more lasting shift in the market.
