ethereum, along with the rest of the cryptocurrency market, has seen a notable resurgence in recent weeks, with its price jumping to a 19-month high of $2,400. This comes amid growing anticipation regarding the approval of an eth spot ETF in the United States.
However, the second-largest blockchain network has not seen its user numbers increase, leading to the question of whether the price of eth will rise even further if that changes.
No new users for ethereum
As mentioned above, the cryptocurrency market appears to have put the devastating bear and bust cycle of 2022 behind it, as the prices of numerous assets, including eth, have soared to their highest levels in almost two years. The total crypto market capitalization has increased by more than half a trillion in recent months.
ethereum, being the second-largest cryptocurrency by market capitalization, is among the most popular assets, especially for users looking for DeFi, NFTs, or other niches that employ blockchain. However, IntoTheBlock data shows that there hasn't been much interest from new users lately.
Despite the bullish market conditions, ethereum is not seeing a significant influx of new users. Both the number of new addresses and the new adoption rate do not show significant peaks. What do you think this means?
https://t.co/gyjfRaU3C9 pic.twitter.com/jKoe7AOuCY– IntoTheBlock (@intotheblock) December 8, 2023
Why is that so strange?
This is particularly interesting and perhaps unexpected in the current environment. Retail investors tend to follow expectations. Indeed, such hype has returned to the markets, btc and eth in particular. This is due to the increasing number of entities applying to launch btc and eth spot ETFs in the United States.
For example, the number of bitcoin addresses and active users continues to rise, and wallets with non-zero balance recently surpassed the 50 million mark. So the hype for bitcoin is definitely here, but this does not seem to be the case with ethereum.
But then again, all that can change in an instant, especially if the US Securities and Exchange Commission soon approves an ethereum spot ETF. If that were to happen, the price of eth could skyrocket even more with the growing number of users and investors.
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off fees on Binance Futures for the first month (terms).
<!– ai CONTENT END 1 –>
