Key Points
- Ethereum network is experiencing a slowdown, with declining dominance and low demand for ETH.
- Founder Vitalik Buterin is engaging more on social media platforms to boost activity.
The Ethereum network has been undergoing a slow phase, with other networks like Solana partially succeeding in stealing its limelight in recent months.
Founder’s Efforts to Boost Network
The decrease in Ethereum’s dominance has led to a shift in money flow towards other networks like Solana, Bitcoin, and the Binance Smart Chain. This situation has prompted Ethereum’s founder, Vitalik Buterin, to take action. His increased engagement on social media platforms, especially since the last week of August, is aimed at boosting activity in the network.
The network’s decline in popularity is evident in its transaction data. The Ethereum network ended August with the lowest number of daily large transactions since 2015. These were transactions valued at $100,000 and above.
Address Balances and Active Addresses
The number of zero balance addresses opened in September at the third-highest level in the last eight months. This was after a significant increase from approximately 85,000 addresses to over 171,000 addresses with zero balance in just three days.
The number of active addresses also dropped significantly between July and August. The Ethereum network achieved over 800,000 daily active addresses in July, which was the highest recorded address activity in 2024. However, it has since dropped to the 500,000 active addresses range.
The decreased interest in the Ethereum network is reflected in ETH’s price action. The cryptocurrency has been in an accumulation zone for the last four weeks. Despite this, it has struggled to maintain bullish momentum, especially after a death cross formation about two weeks ago.
ETH is currently within a previously tested support level. However, the surge in zero-balance addresses signals a lack of bullish confidence. It remains to be seen whether it will bounce back from this level.
