The cryptocurrency community is paying attention to Ethereum, the second-largest cryptocurrency by market capitalization, as it continues to rise in value. Ethereum’s recent advance above $1,800 has been made possible by a significant fall in exchange supply and a surge in new addresses. This suggests that Ethereum may again surpass the $2,000 level.
📈 #Ethereum's rise above $1,800 has been aided by its largest day of new addresses created since October 7th. If the long-term trend of network growth continues, and exchange supplies continue to drop, $ETH has justification to cross $2,000 once again. https://t.co/SWAC3BVzz8 pic.twitter.com/xRjYUfpkyO
— Santiment (@santimentfeed) November 1, 2023
Increases in New Addresses
The recent spike in new addresses is one of the most important signs of Ethereum’s increasing popularity. October saw the largest rise in network traffic since October 7th, with over 38,000 new addresses being created. This significant increase suggests that both current users and new ones have a renewed interest in Ethereum. This indicates a positive feeling among investors and is a hopeful sign of network growth.
Diminished Exchange Supply
The fact that there is less Ethereum available on exchanges is another important reason supporting Ethereum’s positive momentum. Just 8.37% of all Ethereum in circulation is currently held by exchange supply, which is the lowest percentage since the early days of Ethereum trading in 2015. A decline in the exchange supply may indicate that investors are holding onto their Ethereum for the long run or to take part in the many non-fungible token (NFT) and decentralized finance (DeFi) initiatives that have been flourishing on the Ethereum network.
Possibility of Reaching $2,000
The recent spike in Ethereum addresses and the subsequent decline in the exchange supply are consistent with the market’s general upward trend. It’s realistic to expect Ethereum to cross the $2,000 mark once more as demand for the cryptocurrency increases and the supply on exchanges becomes more limited.
In Summary
The current success of Ethereum shows that people are becoming more excited and confident about the network. The network’s capacity to draw in and hold on to users is evidenced by the spike in new addresses and the declining quantity on exchanges. Ethereum continues to be a key participant in the cryptocurrency field as it provides the framework for many other blockchain applications, such as NFTs, DeFi, and more. With the current state of the market and the favorable feeling surrounding the network, Ethereum has a good chance of testing and even surpassing the $2,000 milestone.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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