Ethereum New Wallet Addresses on Spike As ETH Consolidates at $2,977, Suggesting Looming Market Momentum

Ethereum (ETH) is gaining substantial traction as a massive surge of new wallet addresses on the blockchain suggests remarkable network expansion. According to data shared today by market analyst Crypto Patel, the daily number of new addresses on the Ethereum network has significantly risen as the year draws closer to its end. As per the data (sourced from Santiment metrics), the daily count of new wallets on Ethereum now stands at 163k per day compared to 124k noted in July. This means that since the end of July, Ethereum has pulled in over 24.45 million new wallet addresses over the past multiple weeks and counting, signifying increasing user activity on the Layer-1 blockchain.

Ether On-Chain Adoption on The Rise

The data indicated several important observations. The first one is that new wallet creations happened throughout this month. Specifically, the data singled out two days this month (December 2 and December 15) when Ethereum experienced additions of 197,380 and 195,460 new wallets, respectively. These days registered the highest daily wallet creations, exceeding records noticed during Ether’s peak market rallies in August and September.

This pace of wallet creations signifies that ETH could be moving into a crucial phase where its network strength starts to bolster price action upside, despite long-term investors remaining bearish. The setups of new addresses show genuine customer activity on the Ethereum network, pointing out increased adoption of the chain. The trend showcases that the blockchain is not just experiencing speculative interest but is also preparing to witness a new price surge soon because of this genuine user engagement.

ETH Price Outlook

Despite the rapid inflows of new customers using fresh wallets, the Ether price remains stuck in consolidation. On Tuesday this week, December 16, the broader crypto market witnessed a significant plunge that saw prominent tokens like Bitcoin and Ethereum dropping from their crucial levels: $90,000 and $3,000, respectively, pulled down by the growing uncertainty around the US Fed’s policy outlook for next year. Since that day, BTC and ETH have been trading below $90k and $3,000, currently standing at $88,167 and $2,976, down 2.2% and 4.4% over the past week. 

The Fed’s December interest rate cut did not bolster the prices of crypto assets, as digital assets and stocks fell because of the regulator’s cautious stance. With the recently concluded Fusaka upgrade and the increasing number of customers entering the network, ETH is poised to see a potential upturn.