Ethereum Network Activity Up 48% Following Coin's 50% Rally
The Ethereum rally continues with a total growth of 50% since the beginning of October, which means that Ether's on-chain and market data follows and can give additional signals to traders.
Ethereum network performance
According to the provided data, Ethereum's network activity has gained additional traction and caught up with the growth rates of the coin's price; it is currently remaining at 48%. The growth in network activity is usually the fundamental support of each Ethereum rally.
Coins fueled by pure speculative interest may not show the same network net growth behind each rally, but in the case of projects like Ethereum, Solana or Cardano, dApps and DeFi technologies attract more investment into technology.
📈 #Ethereum's latest address activity is up about 48% since the number of unique $ETH addresses bottomed out in late September. Volume, social, volume, network profit/loss, and address activity are all covered in @santimentfeed's latest insight. 👇 https://t.co/jAfjizTdPy pic.twitter.com/Es0DWEWa6a— Santiment (@santimentfeed) November 12, 2021
In 2021, NFT and decentralized finance are the two industries that have brought in more than approximately $100 billion and more than $1 billion, respectively. With the growth of the two industries and strong funds inflows to the cryptocurrency market, Ethereum is inching closer to Bitcoin's capitalization.
Network growth as an indicator
Network growth usually acts as a lagging indicator and is used as a confirmation of bullish cycles. It cannot be used to predict the continuation or reversal of a rally.
Previously, the first drop in the network activity of Ethereum was witnessed at the end of October which was followed by an insignificant 6% correction on the market. Right after a short sell-off, Ethereum's price jumped back by 9%.
At press time, Ethereum is trading at $4,494 with a 2.8% price decrease while closing the previous trading day with a 2.3% profit. Previously, U.Today reported that the Ethereum Foundation sold its holdings worth $90 million.Source