Recent crypto market conditions have made it a bit difficult for some networks. A decrease in overall activity and daily active addresses is the logical outcome. However, Ethereum rebounds sharply from this dip and recently hit a new all-time high for DAA.
Ethereum Daily Active Addresses ATH
One could look at the daily active addresses trend in multiple ways. On the one hand, there are transaction fees to consider and whether applications, products, and services on the network cater to people’s needs. On the other hand, the price of the native network asset may fluctuate wildly, affecting overall network activity for better or worse. In the crypto world, both sides of the medallion are always in play, even if people may not acknowledge it.
Ethereum finds itself in a curious position in that regard. The network currently has very low transaction fees, which is relatively unusual. More specifically, users have complained about high gas fees for years now. Somehow, those fees have not plummeted, which should spark an increase in developer activity and daily active addresses.
📈#Ethereum daily active addresses reached a new ATH of 1.1M, making a total of 1.64M transactions. #ETH gained more than 32% over the past 30 days due to the upcoming Merge. However, ETH Gas remains low, which makes transactions affordable for users.
— CryptoRank Platform (@CryptoRank_io) July 28, 2022
Unfortunately, that momentum took a good while to materialize. Not because people stopped liking Ethereum, but due to very bearish market pressure driving the ETH value down. Despite setting an all-time high of above $4,000 in 2021, that same ETH now trades at roughly $1,600 and hit high $900s not that long ago. Plummeting values make people fearful and will always diminish network activity, regardless of the network becoming more affordable to use.
Things have begun to turn around, though. Ethereum recently set a new all-time high of 1.1 million daily active addresses. That is over 150,000 addresses more than the previous peak, recorded in early 2021. In addition, those addresses generated 1.64 million transactions. Both statistics confirm Ethereum’s network health ahead of the upcoming Merge to pave the way for switching to proof-of-stake.
Miners Remain Committed
Despite the upcoming switch to proof-of-stake, miners continue to support the Ethereum network. Although the hashrate all-time high of over 1.1 petahash per second is in the past, the network remains healthy. Currently at over 941 terahash in mining power – a 1.35% increase in the past 24 hours – there is plenty of miner support for Ethereum. Those miners are responsible for helping the network process over 250 blocks per hour, despite earning far less from transaction fees. Fast transaction times benefit the growing number of daily active addresses on the Ethereum chain.
To put that latter aspect into perspective, Ethereum has relatively low mining profitability. BitInfoCharts ranks it at $0.0247 per day per Mhash/second. For Bitcoin, that is $0.1222 per day per 1 Thash/second. Even so, there is ample interest in mining across both networks, confirming Bitcoin and Ethereum will remain the two largest cryptocurrencies for a while to come.
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