Based on its 7-day moving average, Ethereum’s levels of activity have smashed its 2-year ceiling.
According to data by Glassnode, on Friday, June 3, Ethereum’s active addresses crossed its 400,000 ceiling to hit 405,014. The last time Ethereum crossed the threshold was in May 2018.
Glassnode describes ‘active addresses’ as “the number of unique addresses that were active in the network either as a sender or receiver.” While it is a standard requirement to have active addresses in all transactions, Glassnode only counts addresses from successful transactions.
Even though the metric dipped to 390,162 on Monday, June 6, Ethereum still has a 115% increase compared to late January 2020.
Possible reasons for its steady growth could be the outstanding success of Ethereum-driven decentralized finance (DeFi) platforms. Other reasons include an increase in Tether (USDT) transactions on Ethereum’s network.
As ETH’s demand continues to rise, the coin is expected to grow accordingly. As at press time, ETH is the second-largest crypto by market cap, trailing behind Bitcoin. According to data from CoinMarketCap, ETH dominates about 9.7% of the crypto market.
Meanwhile, some analysts argue that using a 7-day moving average is a better metric to compare Ethereum with Bitcoin. This is because Bitcoin uses a UXTO (Unspent Transaction Output) model while Ethereum uses an accounts model.
Image Credits: Pixabay
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