Ethereum (ETH), the second-biggest cryptocurrency, is leading other Layer-1 blockchains in a key metric. Data show soaring active addresses on the Ethereum mainnet and leading Layer-2 networks. The surge in active addresses comes despite ETH registering declining prices on the daily chart.
The Ethereum Active Addresses In Rapid Rally
Data from the crypto analytics platform IntoTheBlock revealed Ethereum has hit a new milestone of over 5 million addresses across the Ethereum mainnet and leading L2 platforms. Ethereum now outpaces other top protocols like Solana (SOL), and Binance Coin (BNB), including other L2s in active addresses.
An address is considered active after effectively executing a transaction, either as a sender or receiver, within a period. Thus, active addresses represent the total number of transacting users on the network.
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Typically, growing active addresses indicate increased blockchain usage, which might be an effective way to monitor network activity over time. Consequently, this metric is often a leading indicator of price action, as increased network utilization may increase demand for the blockchain’s native token.
However, the latest network utilization has not positively affected ETH’s price. As of this writing, ETH price was trading at $2,628, down by 1.9% in the last 24 hours. Ethereum also gave up its weekly gains, falling 1.28% over the past week.
The surge in address activity could also be attributed to increased selling pressure for ETH in the last few days. Investors accumulate more coins at lower prices to maximize profit when momentum rises. This contributed to pushing network activity to local highs.
General Outlook of Ethereum Layer-2 Solutions
Across the Ethereum Layer 2 ecosystem, Coinbase’s Base leads in daily speed and other performance metrics. Within the last 24 hours, Base recorded a transaction speed of 69.59 Transactions Per Second (TPS), per L2Beat data. Base is also the highest L2 player, with a 30-day transaction count of 160.7 million.
Furthermore, Base follows Arbitrum as the largest Ethereum Layer 2 by Total Value Locked (TVL). On October 22, the TVL of all Ethereum Layer-2 solutions rose to $38.37 billion, representing a 217% surge from a year ago.
Of this figure, Arbitrum records the highest TVL at $14.06 billion. Base comes behind with $7.74 billion, followed by Optimism Mainnet with $6.32 billion.
The TVL is a cryptocurrency metric used to measure the total value of digital assets staked on a particular Decentralized Finance (DeFi) platform. A higher TVL vouches for a secure and trusted platform.
Price Expectation of ETH Price
Ethereum’s price is anticipated to shoot up with increasing active addresses. However, the 24-hour trading volume decreased by 16.9% to $15.9 billion, indicating investors’ pessimistic outlook. The Ethereum price prediction sentiment is neutral, while the Fear and Greed Index shows Greed at 70.
Crypto analysts anticipate that in October 2024, ETH might fluctuate between $2,558.28 and $2,725.58. Meanwhile, Ethereum co-creator Vitalik Buterin aims to scale the network to over 100,000 TPS. This is part of a long-term strategy focusing on improving both Layer 1 and Layer 2 networks.
