Ethereum On-chain Activity Remains on Multi-year Highs- Will ETH Rebound?

Ethereum on-chain activity remains on its multi-year record highs signaling a surge in the network’s unique active addresses over the past few weeks.

Ethereum network could be proving its dominance as the king of decentralized finance and smart contracts as other blockchains rally behind. In the past week, the blockchain has seen a surge in the number of unique active addresses suggesting increased on-chain activity. Despite a low trading volume and slight price decrease over the past 24 hours, the ETH has surged 2.34% in the past week, per CoinMarketCap.

According to on-chain metrics by Growthepie, the Ethereum blockchain has recorded 13.2 million active addresses in the past week. With the price surging in the same period, this suggests that investors have a renewed interest in its applications for decentralized finace (DeFi), NFTs and layer 2 solutions.

With more than 736,000 addresses active on multichains, Ethereum builders could be eyeing scalability through layer 2 scaling solutions. The layer 2 multiplier sits at 5.04x indicative of substantial ecosystem participation.Additionnally, layer 2 scaling could mean new network users and thus new capital flowing into ETH boosting its bullishness. As a result, ETH could be gainng long-term strength hoping to reclaim key resistance levels and break new all-time highs.

Ethereum’s open interest (OI)-funding rate has flipped positive in the past week signaling rising investor conviction backing the current netwotk usage growth, per Coinglass data. With the price flactuating above $2510, and the ETF market growing, ETH’s bullish rally could be brewing. Traders are monitoring market fundamentals and on-chain data at higher timeframes for further insights.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their research before making financial decisions.