More and more people are using Ethereum: analysts are becoming more positive

The use of the Ethereum (ETH) network has increased significantly in recent weeks. More and more wallets are performing transactions and the number of daily transactions is increasing rapidly. According to analysts, this development could lay the foundation for the next upward movement.

Ethereum attracts millions of new users

New figures from blockchain analysis company Glassnode show that the number of new active users has risen sharply in a short time. The so-called activity retention figure, which measures how many wallets remain active, has almost doubled in one month. The number of new addresses increased from just over 4 million to approximately 8 million.

According to Glassnode, it is not just about existing users who have become more active. The number of wallets that interacted with the network for the first time increased sharply. This indicates a clear influx of new users who will actually continue to use Ethereum.

Ethereum breaks transaction record

In addition, a new record was set this week for the number of daily transactions. With 2.8 million transactions per day, that level is approximately 125 percent higher than a year ago.

According to the Milk Road platform, this is mainly due to the increasing use of stablecoins on Ethereum, while transaction costs have actually become lower.

These lower costs are no coincidence. Ethereum is moving more and more activity to layer 2 networks, which process transactions faster and cheaper. The main network is mainly used for settlement and security.

According to Milk Road, this shows what scalable financial infrastructure looks like in practice.

Optimism among analysts is increasing

The improved network usage also translates into optimism among analysts. Arctic Digital’s Justin d’Anethan says there are many reasons to be positive about Ethereum. According to him, technical indicators and new capital inflows point to room for higher prices.

Nick Ruck of LVRG Research also points to the combination of strong on-chain data, continued ETF inflows and growing institutional interest. According to him, recent scalability upgrades increase the likelihood of a breakout above key resistance levels.

At the time of writing, the Ethereum price is at $3,300, an increase of 11.5 percent since the beginning of the year.