Increased adoption may not be the case for the latest spike, according to some industry experts.
Ethereum’s daily active address has hit a new all-time high surpassing the previous peak by a whopping 50%. This massive increase comes amid the latest developments on the Merge front.
- According to the crypto analytic platform, IntoTheBlock, more than 1.1 million addresses made an ETH transaction on July 27th, catapulting the total number of transactions to 1.64 million.
- In doing so, it broke the previous high of 718,000 established in 2018.
- The huge spike in address activity typically signifies an increased network adoption and demand for its native token.
- But the Head of Strategy at cryptocurrency exchange Coinbase believes the increase in activity may have risen due to the growing number of token transfers per unit of gas and may not mean greater adoption.
“The reason why you see record active addresses is because the market weighed mundane things to do (send/receives, like with Binance doing a maintenance sweep) at highs versus what most of us would classify as “productive” activity like Defi/NFTs (which are more gas intensive).”
- The new ATH of the daily active address comes at the backdrop of Ethereum devs finalizing the merge testnet details.
- As part of the announcement, the devs said that the latest proof-of-stake testnet transition will be on the Goerli testnet, which happens to be the closest simulation of the Ethereum mainnet.
- Prater is Goerli’s version of the Beacon Chain, and the Merge is expected to take place between August 6 and 12 in an upgrade dubbed “Paris.”
- With the optimism surrounding the long-awaited Merge on the mainnet, Ethereum has rallied by 60% since the beginning of July.
Source: CryptoPotato
