The leading smart contract platform in the cryptocurrency markets, Ethereum (ETH), recorded a good recovery since its rapid drop on January 22, where it lost 10% of its value. According to data from 21milyon.com, the second-largest cryptocurrency registered a steady growth of 4.74% last week.
Increasing Number of Addresses on Ethereum
During the uptrend, ETH also rose to $2,380. The price increases came along with a sharp growth in on-chain activities. According to the on-chain analysis firm Santiment, last week an average of 484,000 unique addresses interacted with the network daily. The growth of the network could also be promising. Approximately 101,000 new addresses are being created on the cryptocurrency network every day.
In fact, the daily new address creation rate was 28% faster compared to three months ago. Another important indicator of strong network activity, the number of transactions, showed a 10% increase throughout the week. Considering these measurements, it became apparent that ETH’s increasing market value is built on the foundations of increasing network utility. Over the years, many criticisms have been directed at projects that saw an increase in the market value of their tokens despite little development on their networks.
ETH Shows Bullish Signals
Ethereum‘s network value to transaction volume ratio has been steadily declining in recent months, which could indicate that the token is undervalued. This situation can be interpreted as a bullish signal, as it implies that the token has high growth potential. It is noteworthy how the ETH price has entered a strong uptrend while the ratio was decreasing. However, the increase in spot prices has not been successful in activating the derivatives market.
According to experts’ analysis of Coinglass data, ETH’s Open Interest (OI) was 5.2% lower than the previous week at the time of writing. However, according to the analysis of Hyblock Capital data, the market sentiment shifting from neutral to greed in the last two days could mean that things may change very soon. Yet, experts believe that FOMO could lead to more ETH purchases in the coming days.
