Ethereum Network Records Surge in User Activity With 200k New Addresses

The Ethereum network experienced a remarkable surge in activity between January 24th and 25th. According to Santiment data, a staggering 206,290 new addresses were created, marking the highest daily increase since October 8th, 2022.

Notably, the sudden spikes represent a significant 27-month high in daily wallet creation, a noteworthy development considering the current market context.

The substantial growth in new Ethereum addresses is particularly striking given the prevailing negative sentiment surrounding ETH. While other altcoins have demonstrated stronger price performance recently, overshadowing Ethereum’s gains, the network’s expansion suggests underlying strength and continued adoption.

Ethereum ETFs’ Remarkable Growth

Amidst a broader cryptocurrency market downturn, Ethereum faces the risk of dropping to $3,000, potentially breaking below the previous low of $2,913. With significant liquidations across the market ($850 million, $789 million from long positions) and altcoins under substantial selling pressure, Ethereum’s recent 6.80% drop in the past 24 hours and fall below $3,200 highlights the pressure at the key psychological support level of $3,000.

However, since November 2024, Ethereum (ETH) exchange-traded funds (ETFs) have witnessed a remarkable surge in institutional investment, attracting over $5 billion in inflows.

The rise of Ethereum ETFs has been remarkably swift. Trading volumes have steadily increased since November 2024, reaching a peak in December, with many days exceeding $1 billion in trading activity.

Additionally, this heightened trading volume strongly indicates robust institutional faith in the asset. Popular ETFs like ETHE and ETHW have further cemented Ethereum’s attractiveness as a diversified investment option within institutional holdings.

Institutional Interest in ETH

Ethereum’s appeal amongst institutional investors continues to rise. The Shanghai upgrade, allowing for the withdrawal of staked ETH without network disruption, significantly boosted institutional staking participation, mitigating a previous risk associated with the asset.

Furthermore, the development and implementation of Layer-2 solutions, such as Arbitrum and Optimism, have considerably enhanced Ethereum’s scalability, making it a more attractive proposition for large-scale transactions and applications.

The growing use of Ethereum’s blockchain for tokenizing real-world assets also contributes to its institutional appeal. JPMorgan’s recent issuance of a $20 million tokenized bond serves as a prime example of this burgeoning trend, demonstrating the practical applications of Ethereum beyond speculative investment.

Notably, Bitcoin ETFs maintained a dominant position, attracting $518 million in net inflows this month. However, the $5 billion influx into Ethereum ETFs since November 2024 significantly shows a shift in investor sentiment. Ethereum’s wider utility in DeFi and its growing role in tokenizing real-world assets provide more diverse investment opportunities than Bitcoin’s more limited use case.