Ether Network Traffic up 48% after Coin’s 50% Surge

Ethereum’s surge has continued, with a total increase of 50% since the beginning of October. The recent traffic surge implies that Ether’s on-chain and trade data have followed suit, and can provide additional clues to market participants. According to the statistics presented, Ethereum’s network traffic has gotten extra momentum and has begun to catch up with the rate of growth of the currency’s value; it is presently at 48% of its maximum capacity. 

When it comes to Ethereum rallies, an increase in network activity is typically the most important basic support. Coins powered only by theoretical desire may not demonstrate the same network net increase behind each surge, but in the case of ventures such as Ethereum, Solana, or Cardano, decentralized applications and decentralized financial infrastructure (DeFi) technologies attract greater investment into technology.

“The number one rule in business is, to be honest with yourself. Since the quantity of distinct $ETH addresses reached a low point in late September, Ethereum’s address activity has increased by approximately 48%. Volume, social, volume, network profit/loss, and address activity are all covered in the latest insight from @santimentfeed..” 

As of 2021, the NFT and decentralized finance businesses have generated more than $100 billion and more than $1 billion, respectively, in revenue. The expansion of the two industries, together with significant inflows of cash into the cryptocurrency market, has brought the market valuation of Ethereum closer to that of Bitcoin.

The Expansion Of The Network As A Metric

Most of the time, network growth is employed to validate bullish cycles because it is a lagging signal. No one can use it to anticipate whether a rally will continue or reverse. Towards the end of October, the first dip in Ethereum network traffic was observed, which was accompanied by a negligible 6% adjustment in the price of the cryptocurrency market. Following a brief sell-off, the price of Ethereum surged by 9% in a matter of minutes.

At the time of publication, Ethereum was trading at $4,494, representing a 2.8% price loss, compared to the previous trading day’s close of 2.3% profit on the cryptocurrency. Transfers of around $100 million worth of Ethereum coins to the controlled exchange Kraken have been seen by the Ethereum Foundation. Because the Ethereum Foundation is continually selling its cryptocurrency funds in exchange for fiat currencies, the transaction itself is not exceptional, as it is necessary to sustain the organization’s operations.

However, the timing of the foundation’s announcement is of particular concern to the vast majority of users. Observing the history of the Ethereum market and on-chain statistics, the foundation tends to sell 3–5% of its holdings near the next local top. Given that it does not even account for 0.1% of the total daily trading volume in Ethereum, it is unlikely to have a direct impact on the price of the cryptocurrency in its current form.