The Ethereum network has been the focus of all attention since its transition from Proof of Work to Proof of Stake (PoW), in which it was a Proof of Work mechanism. Granted, the digital asset’s price hasn’t done as well as many had predicted it would after the upgrade but the new functions of the network remains fascinating. Ethereum now has the biggest single day of growth in 2022, marking another milestone after the upgrade.
Growth On Steroids
Since the Merge, activity on Ethereum’s blockchain has increased. This steady growth had accidentally led to Ethereum’s greatest ever day of growth in the year 2022. While the prior year high was set at the beginning January, numbers on Saturday October 8 had effectively broken the January 3rd number.
Santiment is an online data analysis company that claims there were 135,780 Ethereum addresses created on October 8, 2018. The number of new Ethereum addresses created on October 8th was 11.1% greater than in January. This is a record-breaking total for the network by 2022.
📈 #EthereumWith 135,780 newly created addresses, Saturday saw an increase in new addresses $ETHThe network is seeing more addresses. This is 11.1% greater network growth than that of Jan 3, 2022, which was the next highest. Utility increases often foreshadow asset breakouts. https://t.co/tIRv6sJxJc pic.twitter.com/boA6v5jk8W
— Santiment (@santimentfeed) October 9, 2022
The project being credit for the network growth is perhaps even more fascinating than its actual success. An ex-Google employee created a new token, Xen. It allows users to create their tokens. Xen tokens have already been minted more than 400,000 times.
Source: ETHUSD on TradingView.com| Source: ETHUSD on TradingView.com
Is Ethereum (ETH) going to rise in price?
Any digital asset that experiences such rapid growth will always have a bullish trend. This new growth in Ethereum could lead to an increase in price. The cryptocurrency’s price will rise to $1,500. This is supported by the deflationary nature ETH issuance.
With Xen’s launch, it has accounted for about 42% of the total fee burned by the network. At 163 ETH, ETH issuance became deflationary with less ETH entering circulation. It is possible for ETH to breakout if the supply keeps falling.
It is important to remember that the price of Ethereum follows that of bitcoin more often than usual. It is unlikely that bitcoin will see a breakout. That would cause ETH to slow down its growth and prevent it from rallying. The current events could point towards a breakout of the second largest cryptocurrency but it is still waiting for bitcoin to show the way.
Featured Image from Crypto News. Chart from TradingView.com
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