Bullish Signal? Ethereum Experiences Largest Network Growth Surge Since October 2022

Despite recent negative sentiment surrounding Ethereum, the crypto network has experienced significant growth not seen in over two years. According to an analysis by market intelligence platform Santiment, between January 24 and 25, Ethereum saw a notable increase 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 surge 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 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 underperformed compared to Bitcoin. While crypto analysts expect a potential bullish reversal soon, investors insist that ETH has fallen short of expectations in this bull cycle. Moreover, social media discussions within the Ethereum community have raised concerns about the network’s decentralization, regulatory compliance issues, and co-founder Vitalik Buterin’s periodic sales of ETH.

### Bullish Signal?

The rise in wallet creation is surprising given the predominantly negative investor sentiment surrounding Ethereum. 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, strengthening its position as a leader in total non-empty addresses in the crypto sector. Recently, the Ethereum Foundation (EF) launched a multisig wallet to participate in the DeFi ecosystem to enhance the EF’s transparency, particularly in its treasury management. Meanwhile, there has been a significant rise in Ethereum’s open interest, reaching a new all-time high. Open interest monitors active futures contracts across exchanges and indicates high trader activity, with more long positions being opened. With Ethereum’s open interest reaching record levels, the asset could breakout and see a rally that pushes it past the $3,000-$4,000 range.

Twitter: Ethereum’s network growth hits a record high since 2022, with a surge in new wallet creation and rising open interest. Could this signal a bullish rally ahead? #Ethereum #Crypto