In a surprising turn of events, Ethereum (ETH) has embarked on a path to recovery after enduring a turbulent two-month period. The crypto giant is now witnessing an upswing in activity, marking one of its most significant surges in over eight years. Santiment experts have identified this surge as a possible bullish signal for Ethereum, hinting at brighter days ahead.
A Remarkable Milestone: Over 1.1 Million Wallets Active in 24 Hours
On September 13, 2023, a staggering 1,089,893 unique wallets were involved in transactions on the Ethereum (ETH) network. This unprecedented level of activity is now the second-highest recorded in Ethereum’s mainnet history. To put this into perspective, Ethereum typically witnesses activity from 300,000 to 450,000 wallets on any given day. However, on this particular day, there was a mysterious surge of 150-200% in wallet activity. Santiment analysts view this remarkable upturn as a potential “capitulation signal” that could pave the way for a significant price rebound.
A Glimpse into History: Ethereum’s Busiest Days
The highest level of activity in Ethereum’s history was recorded on December 9, 2022, immediately following the collapse of the FTX/Alameda ecosystem. Unfortunately, this surge was followed by a sharp decline in Ethereum’s price, which plummeted to a multi-month low of below $1,160. During that record-breaking day, more than 1.42 million Ethereum accounts engaged in transactions.
In a related development, users withdrew a substantial amount of 640,000 Ether (ETH) from centralized exchanges on the same day, adding to the anticipation of increased volatility. It’s evident that major Ethereum activity metrics are on the rise, fueling expectations of significant market movements.
Ethereum’s Transition: From Deflationary to Inflationary
Despite the recent mini-rally, the net activity on the Ethereum network remains relatively low. Consequently, the token burn process enabled by Ethereum Improvement Proposal 1559 has slowed down, while the issuance rate remains stable.
Over the past week, Ethereum validators received 15,610.53 Ether (ETH), as reported by Ultrasound Money. In contrast, only 11,762.10 Ether (ETH) were destroyed during the same period. This shift marks a transition for Ethereum, as it loses its deflationary status that once excited network enthusiasts. Currently, Ethereum faces an annual inflation rate of 0.167%.
The Current State of Ethereum
At the time of writing, Ethereum (ETH) is trading at $1,619 on major spot platforms, reflecting a 1.3% increase in the last 24 hours. While the recent surge in wallet activity and the potential for a bullish trend are encouraging signs for Ethereum enthusiasts, the crypto market remains as dynamic as ever, with fluctuations being the norm rather than the exception.
In conclusion, Ethereum’s recent surge in wallet activity is a significant development that has caught the attention of crypto enthusiasts and experts alike. Whether this surge will indeed herald a sustained bullish trend remains to be seen, but it underscores the resilience and potential of the Ethereum network in the face of market challenges. As always, investors and enthusiasts should stay vigilant and informed as they navigate the ever-evolving crypto landscape.
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