Recent numbers show an increased on-chain activity on Ethereum.
Market intelligence platform Santiment has reported that the daily active addresses for Ethereum spiked to nearly 1,089,893 on September 13th.
This is the second-largest number of daily active addresses on Ethereum ever, trailing only the peak recorded on December 9th, 2022.
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According to Sentiment analysis, the swell in Ethereum's on-chain activity could indicate an upcoming market volatility period, as well as increased demand for Ether (ETH) as an asset.
The news comes when Ethereum faces slight market turbulence, recently dipping below the $1,700 mark. Despite the instability, Ethereum continues to dominate in the DeFi and smart contract spaces, boasting a total value locked (TVL) of around $20 billion.
Ethereum's resilience and utility make it a compelling choice for institutional investors, who have displayed an elevated interest in Ether-specific spot ETFs. The latest to file for Ether ETF is the stock exchange Nasdaq.
The network's relevance extends beyond its own blockchain, serving as an integral part of various other blockchains via its Ethereum Virtual Machine (EVM). The optimism around Ethereum is supported by its substantial liquidity, valuation, and active trading, which has been picking up recently.
While Ethereum stands out for its unique fundamentals, its price trends still show a link with Bitcoin (BTC). Historically, September has been a bearish month for cryptocurrencies, particularly preceding a Bitcoin halving event. This could imply that Ethereum may face downward price pressure in the coming weeks.
At the time of writing, Ether (ETH) retails for $1,626, recording a 1.74% price increase.
The surge in Ethereum's daily active addresses to almost record-breaking numbers is a focal point for market speculation amidst current price fluctuations and growing institutional interest. The network's future looks broadly positive, but investors should also brace for potential volatility in the near future.
