On the market, Ethereum is considered the number 2 crypto in terms of market capitalization. To further establish its notoriety, Ethereum has just reached a major milestone: more than 100 million addresses funded. This feat comes as the crypto market is declining. What impact could this growth have on the price of Ethereum?
Ethereum Network Shows Exponential Growth
Ethereum is a decentralized platform allowing the development and execution of decentralized applications (dApps) as well as smart contracts. Its native crypto currency, Ether (ETH), serves as a means of payment and reward for participants.
Since September 2022, Ethereum has made a significant transition. It is in fact moved from consensus based on proof of work (PoW) to consensus based on proof of stake (PoS): The Merge. This transition aimed to:
- reduce energy consumption and transaction fees,
- increase global adoption of the Ethereum network.
It seems that this strategy has paid off. According to data compiled by IntoTheBlockthe number of funded ETH addresses exceeded 100 million for the first time on Monday October 16, 2023. This represents an increase of 7% compared to September 2022, the date of the transition to PoS.
Note : Funded ETH addresses refer to those that hold at least some Ether.
What impact on the price of crypto ETH?
The price of Ethereum (ETH) is currently rising at $1,570 as bulls make efforts to contain losses from Monday’s flash crypto rally. This rally was caused by fake news published by Cointelegraph.
From a technical perspective, the price of Ethereum seems ready to bounce or break higher. Indeed, the RSI indicator is currently neutral around 41. This suggests that there is still room for a possible recovery or strong resistance.
From a fundamental perspective, the increase in new users places Ethereum in a favorable position for surpass $3,500 in next bull rally. The rule is simple: the more users there are on the Ethereum network, the more demand there is for Ether. Enough to boost the value of crypto.
In any case, these 100 million users open up promising prospects for the price of Ethereum. As demand increases, the value of ETH will likely increase.
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