Growing daily active addresses indicate increased blockchain usage
According to crypto analyst Ali Martinez, the number of unique ETH addresses active on the Ethereum network as senders or receivers increases. He adds that on July 25, Ethereum registered over 600,000 active addresses, per Glassnode data.
In the past day, 604,888 unique addresses were active on the network, according to the Glassnode Ethereum Active Address chart posted alongside the tweet. Growing daily active addresses indicate increased blockchain usage, which might be an effective way to monitor network activity over time.
As a result, this particular metric is often a leading indicator of price action, as increased network usage can increase demand for the native blockchain token. The most recent use of the network has yet to be reflected in the price of ETH, which has been most affected by the current market sell-off.
At the time of publication, ETH was trading at $1,392, down 9.22% in the last 24 hours. Ethereum also gave up its weekly gains, falling 10.70% over the past week.
Amid the price decline, Ethereum tracked futures saw $104 million in liquidations in the past 24 hours.
Ethereum investment products record inflows
Recent data from Coinshares shows that Ethereum received $8 million in inflows last week, but the corrected higher weekly data shows that Ethereum received $120 million in inflows. Since June 2021, this past week’s inflows were the highest single-week total. This could also signify a shift in mood following a recent 11-week stretch of outflows. It also shows that investor confidence is gradually increasing as the Merge update nears completion.
Overall, investments in digital asset products saw inflows of $30 million last week. However, due to late notification of transactions from the previous week, inflows were adjusted from $12 million to $343 million, making it the largest week of inflows since November 2021, Coinshares noted.
