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ETH Adoption Soars Despite Price Dip

ETH Adoption Soars Despite Price Dip

Ethereum

ETH Adoption Soars Despite Price Dip

Despite a recent 5.57% price drop to $3,051, Ethereum (ETH) network metrics reveal a significant surge in adoption. Daily new ETH addresses skyrocketed to over 200,000, a 27-month peak, signaling robust growth within the ecosystem.

Price Action and Technical Analysis

At press time, the ETH/USD pair traded at $3,051.36. While this represents a recent decline, the 50-day moving average (3,452.83) and 200-day moving average (2,988.11) maintain a bullish structure, although the price has fallen below the 50-day MA. Trading volume reached 75,74K ETH, indicating significant market activity during the sell-off. The Chaikin Money Flow (CMF) indicator reading of -0.04 suggests a slight bearish bias, but remains near neutral territory. This points to short-term selling pressure within a longer-term bullish trend.

ETH price trend

Source: TradingView

Network Growth: A Deeper Dive

Data from Glassnode reveals a remarkable increase in new Ethereum addresses. The chart shows approximately 200,000 new addresses created between January 24th and 25th, exceeding the average daily creation of 100,000-120,000 seen throughout much of 2024. This spike, occurring alongside market volatility, suggests that price fluctuations are attracting new participants. This pattern aligns with historical data, showing similar address growth during periods of price discovery and market uncertainty.

New ETH addresses

Source: Glassnode

Growing Number of Non-Zero Balance Addresses

The number of Ethereum addresses holding a non-zero balance continues its upward trajectory, reaching 136 million in January 2025. This persistent growth, even during price declines, signifies strong network adoption that extends beyond speculative trading. This divergence between price and adoption metrics is often a precursor to significant market shifts.

non-zero ETH addresses

Source: Glassnode

Market Implications

The combination of surging new addresses and the steady rise in non-zero balance addresses paints a picture of robust network growth. Although the ETH price exhibits short-term weakness, the underlying network data suggests expanding adoption and potential accumulation at current price levels. This divergence between price and adoption frequently precedes significant market movements. The continued increase in network participation, especially during price corrections, often signals market maturity and growing institutional interest.

Codeum provides comprehensive blockchain security and development services, including smart contract audits, KYC verification, and custom smart contract and DApp development. We also offer tokenomics and security consulting and forge strategic partnerships with launchpads and crypto agencies.

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