Why Ethereum saw 580,000 new addresses in one week

• Ethereum has seen over 580,000 new addresses in the past week.
• ETH price recovered with less than a 1% increase in price.

The Ethereum [ETH] merge revolutionized the platform by introducing staking, sparking intense discussions throughout the chain. While this groundbreaking event garnered much attention, there’s another metric steadily ascending in the background, silently shaping the future trajectory of ETH with great potential impact.

Read Ethereum’s [ETH] Price Prediction 2023-24

Ethereum new addresses surge

Amidst the focus on Ethereum’s staking and price trends, it’s easy to overlook other crucial metrics. However, recent Santiment data sheds light on a quietly surging aspect: the network’s remarkable growth.

The data indicated a consistent influx of new users joining the network, signaling potential market cap expansion. 

Source: Santiment

A closer examination of the chart revealed that over 580,000 new addresses were created between 1 July and 7 July alone. This remarkable surge further highlighted the underlying strength and promising trajectory of ETH.

ETH on exchanges decline

According to the latest data from Coin Market Cap, Ethereum held an impressive 19% of the total cryptocurrency market cap. With this, it secured its position as the second-largest cryptocurrency, surpassed only by Bitcoin [BTC], which claimed over 49%. Despite ETH’s market dominance, ETH holders actively withdrew their holdings from exchanges. 

Santiment’s chart revealed that the supply of Ethereum on exchanges, relative to the total supply, stood at a mere 9.1%. This suggested that less than 10% of all ETH remained on exchanges, while the majority had been moved to other storage methods. 

Source: Santiment

Further analysis of the chart revealed that approximately 11.3 million ETH was being held on exchanges at press time, indicating a visible decline. This withdrawal trend underscored the growing preference among Ethereum holders for alternative storage solutions.

Also, it reflected their confidence in the long-term value of their holdings.

Ethereum price declines as TVL dominates

According to data from DefiLlama, Ethereum maintained its position as the leading blockchain in terms of Total Value Locked (TVL), compared to other chains. As of this writing, the total TVL across all chains was $44 billion, with Ethereum commanding over $26 billion.

Realistic or not, here’s ETH’s market cap in BTC’s terms

This meant that Ethereum held more than half of the entire TVL in the market, showcasing its dominant presence in decentralized finance.

Source: TradingView

However, ETH has experienced a recent decline. Nevertheless, there were signs of a potential recovery as of this writing. Ethereum was trading at approximately $1,864, showing a modest increase of almost 1% from its previous value.