Many people have made assumptions regarding the origin of the abrupt, jarring increase of active addresses on the network.
Santiment, an on-chain measurement company, said it is still looking into what caused the unexpected rise of ETH active addresses, which has outpaced the previous ATH by a staggering 48 percent.
The analytics company tweeted on July 27 that there were suddenly 1.06 million daily active addresses on Ethereum, smashing the previous record of 718,000 established back in 2018.
An active address is one that has recently completed a transaction. The amount of on-chain activity from developers and companies updating their software or platforms, as well as traders making straightforward token transactions, may be gauged by the number of active addresses.
Santiment claims that its staff is still looking into what caused the rise, nevertheless.
Conor Grogan, the head of strategy at Coinbase, stated on Twitter that increased activity is not due to increasing adoption but rather a high number of token transfers per unit of gas.
In contrast to increased “productive” activity from decentralized finance (DeFi) and nonfungible token, he said that the rise in active addresses is the result of an increase in “mundane” send/receive activity, such as “Binance running a maintenance sweep” (NFT).
According to Santiment statistics, the addresses have been rising from their two-year low point of 364,400 on June 26 with a noteworthy minor rise up to 583,000 on July 16.
The Tether (USDT) daily active addresses measure has also experienced a big increase over the previous two days, from July 26 to 27, which may support Grogan’s findings that more activity is coming through straightforward token transfers.
According to a blog post from the Ethereum team on July 27, the Goerli and Prater testnets for Ethereum are anticipated to combine into a single Goerli testnet between August 6 and 12. On September 19, the Ethereum mainnet is anticipated to migrate into its own merging.
Following the surge in activity, Ether (ETH) had a 15.5 percent pump over the course of the previous day, rising from $1,425 to $1,648.
