Ethereum Witnesses Decline in Active Addresses Amid Market Volatility

Decrease in New Active Addresses on Ethereum Network

Recent market sentiments have turned bearish towards Ethereum (ETH) due to its price volatility, resulting in a significant decline of 43% in new active addresses. This decline indicates reduced network activity and investor confidence.

Fluctuations in Ethereum’s Network Activity

Data from The Block reveals a drastic drop in new active addresses on the Ethereum network over the past three months. In June, active addresses peaked at 138,620 before plummeting to around 89,000 in July. Despite some fluctuations in August, the numbers remained below 100,000.

Impact of Price Surge on Network Engagement

Despite Ethereum’s recent price surge, the number of new active addresses hit a low of 78,100 on September 24, marking a 23.43% decrease. The total active addresses on the network have also declined by 5.69% from June, indicating a lack of user engagement.

Decrease in Network Activity and Transaction Volume

A drop in new active addresses signals a decline in user engagement, leading to decreased network activity and transaction volume on Ethereum. Data from IntoTheBlock shows a 38.4% drop in large transactions on the network from July to September.

Ethereum Loses Top Spot in DEX Volume Rankings

Solana (SOL) surpassed Ethereum in 24-hour Decentralized Exchange (DEX) volume on September 25, with a 39.77% increase, reaching $1.123 billion. Despite this, Ethereum quickly regained its leading position in DEX volume.

Current Status of DEX Volume

As of now, Ethereum’s 24-hour DEX volume has surged by 11% to $1.559 billion, surpassing Solana’s volume. Solana, with a 32.94% increase, still lags behind Ethereum at $1.251 billion.