Summary:
- The number of active Ethereum addresses has remained stable relative to the ongoing crypto-market pullback.
- Active addresses on Ethereum have only dropped by 7% despite the value of ETH plummeting by 56% since its most recent all-time high of $4,868.
- Ethereum daily users are estimated to be at 551k and are constantly involved in DeFi, NFTs, DAO, and GameFi projects.
- According to a recent report by A16z, there are somewhat between 7 to 50 million active users on Ethereum, a number similar to internet users in 1995.
The number of active addresses on the Ethereum network has more or less remained stable despite the ongoing crypto market correction that has been accelerated by the depegging of UST and the LUNA meltdown that soon followed.
According to the CEO of CryptoQuant, Ki Young Ju, active addresses on Ethereum have dropped by only 7% despite ETH’s 56% decline from its recent all-time high of $4,868. Mr. Ki Young Ju explained that Ethereum has an estimated half a million daily active users constantly involved in DeFi, NFTs, DAO, and GameFi.
The CEO of CryptoQuant shared his analysis on the state of Ethereum activity through the following statement and accompanying chart.
ETH price dropped -56% from the top, but the number of active addresses just decreased -by 7%.
If we consider each address as a user, Ethereum has 551,705 DAU(Daily Active Users) today.
These degens don’t care about ETH price but ape into Defi, NFT, DAO, and GameFi projects.
Ethereum Has Between 7 – 50 Million Active Users
Similarly, the team at A16z had concluded in a recent report that the number of active users on Ethereum is between seven to fifty million. Furthermore, this amount of active users was similar to ‘the early commercial internet, that puts us somewhere circa 1995 in terms of development.’
Additionally, using an estimated adoption rate similar to the internet in 1995, the team at A16z projected that Web3 could reach 1 billion users by 2031. As a result, the Web3 ecosystem is still in its early stages of development.
The report, titled ‘Introducing the 2022 State of Crypto Report’, also pointed out that Ethereum is a clear leader in the Web3 arena and developer activity by having nearly 4,000 monthly active developers.
Ethereum Is Still In Bear Territory
Concerning price action, Ethereum is trading in bear territory below the 50-day (white), 100-day (yellow), and 200-day (green) moving averages.
However, the daily MFI, MACD, and RSI point towards an oversold scenario that could result in a bounce back above $2k and consolidation to confirm the latter support level.
But caution is advised going long on Ethereum given that Bitcoin is currently struggling to maintain its price above the crucial $28k support level. A loss of $28k by Bitcoin will most likely translate to more losses for Ethereum and a possible retest of the local low of $1,800 set last week.