Bullish Signal? Ethereum Sees Highest Surge in Network Growth Since October 2022

Despite the negative sentiment surrounding Ethereum in recent months, the crypto network has just recorded significant growth, the kind that has not been seen in more than two years.

According to an analysis by the market intelligence platform Santiment, between January 24 and 25, Ethereum witnessed a significant surge in network growth, the highest since October 8, 2022.

ETH Wallet Creation Soars

Before the weekend ended, Ethereum users created 206,290 new addresses. Santiment noted that this increase in daily wallet creation came amid mild price concerns within the crypto industry.

Additionally, sentiment among ether (ETH) investors has been extremely negative, especially as other altcoins have outperformed the second-largest cryptocurrency. Last week, CryptoPotato reported that the market cap of other assets like Solana (SOL) and Ripple (XRP) had grown by double digits monthly, while ETH was in the red, with a 4.7% decline.

Ethereum has also performed poorly compared to Bitcoin. While crypto analysts expect a potential bullish reversal in the coming weeks, investors insist that ETH has fallen short of expectations in this bull cycle.

Moreover, social media discussions among the Ethereum community have revealed concerns about the network’s decentralization, regulatory compliance issues, and co-founder Vitalik Buterin’s periodic sales of ETH.

Bullish Signal?

Since investor sentiment surrounding the Ethereum network has been predominantly negative, the uptick in wallet creation is surprising. However, Santiment mentioned that the increase in addresses is not the only positive occurrence on the network.

Ethereum is seeing a rise in decentralized finance (DeFi) and staking options, and this has fortified its position as a leader in total non-empty addresses for the crypto sector. A few days back, the Ethereum Foundation (EF), a non-profit organization supporting the blockchain, launched a multisig wallet to participate in the DeFi ecosystem. This move aims to foster the EF’s transparency, particularly in its treasury management.

Meanwhile, there has been a significant rise in Ethereum’s open interest, so much so that the metric hit a new all-time high. Open interest tracks active futures contracts across exchanges and reflects high trader activity, with more long positions being opened. With Ethereum’s open interest rising to record levels, the asset could breakout and witness a rally that would push it past the $3,000-$4,000 range.