Ethereum Active Addresses Surge 10% as Network Activity Ignites
Ethereum’s blockchain just kicked into higher gear—active addresses spiked 10% this week, signaling growing traction despite crypto’s usual volatility.
Why this matters: More users transacting means more gas burned, more DeFi action, and (let’s be honest) more speculative frenzy. The network effect is real, even if half these addresses are just yield farmers chasing the next Ponzi—err, ’innovative yield protocol.’
Bottom line: Ethereum’s still the heavyweight champ for smart contracts. But with fees climbing and Layer 2s eating its lunch, how long until the ’world computer’ becomes a toll bridge for degens?
Active Addresses Surge
CryptoQuant’s latest analysis stated that Ethereum’s active addresses increased from 306,211 to 336,366 within just two days, an almost 10% jump. This surge, coupled with a rise in the price of Ether, indicated heightened network activity and growing interest in the blockchain.
This recent uptick is seen as a positive indicator for Ethereum, especially given its role as the foundation for many major blockchain projects. With Ether being a cornerstone of the broader altcoin ecosystem, any significant price movement in ETH is likely to influence the entire market.
As Ethereum continues to grow, the momentum may spark further growth across decentralized applications and projects built on the network.
“Final thought: Since Ether is the most important token in the Altcoin ecosystem, what would happen if its price explodes? The answer: very likely, the entire ecosystem would move with it.”
Institutional Offloading of Ethereum
With regards to Ethereum’s cost basis distribution, there is a significant concentration of supply around the price level of $1,895, where approximately 1.64 million ETH is held. This concentration indicates a key overhead resistance point, as many holders at this price level were last active in November 2024, during the crypto asset’s rally.
At that time, these investors purchased ETH, driving their cost basis higher. This suggests that as ETH approached this price range earlier this week, it faced selling pressure from these holders who sought to break even or secure profits.
As selling pressure mounts around this price level, it coincides with a broader trend of institutional offloading. For instance, Galaxy Digital transferred 65,600 ETH, worth $105.5 million, to Binance, which was a noticeable decline in its Ether holdings from about 98,000 ETH in February to 68,000 ETH, as tracked by Arkham.
Ethereum funds also faced significant outflows. Meanwhile, CoinShares reported $26.7 million in outflows last week, which pushed the total outflows to $772 million over the last two months. Despite these outflows, the altcoin has seen positive net inflows of $215 million year-to-date.
Galaxy Digital is not the only entity that has cut its Ether position. In fact, Paradigm has also reduced its exposure, as it transferred 5,500 ETH ($8.66 million) to Anchorage Digital on April 22nd.
