Ethereum, alongside the rest of the crypto market, experienced a notable resurgence in the past several weeks, with its price jumping to a 19-month peak at $2,400. This comes amid growing anticipation regarding the approval of a spot ETH ETF in the States.
However, the second-largest blockchain network has not seen its user count increase, which leads to the question of whether ETH’s price will climb further should that change.
No New Users for Ethereum
As mentioned above, the crypto market seems to have put behind the devastating 2022 crash and bear cycle as the prices of numerous assets, including ETH, have shot up to their highest levels in almost two years. The total crypto market cap has risen by over half a trillion in the past few months.
Ethereum, being the second-largest cryptocurrency by market cap, is among the most popular assets, especially for users aiming for DeFi, NFTs, or other niches that employ the blockchain. However, data from IntoTheBlock shows that there hasn’t been much interest from new users to come on board lately.
Despite the bullish market conditions, Ethereum is not seeing a significant influx of new users. Both the number of new addresses and the new adoption rate show no significant spikes. What do you think this means?
— IntoTheBlock (@intotheblock) December 8, 2023
Why Is That So Strange?
This is particularly interesting and perhaps unexpected in the current environment. Retail investors tend to follow the hype. Such hype has indeed returned to the markets – BTC and ETH in particular. This is because of the growing number of entities filing to launch spot BTC and ETH ETFs in the United States.
For example, the number of Bitcoin addresses and active users keeps climbing, with non-zero balance wallets recently surpassing the 50 million mark. So, the hype for Bitcoin is definitely here, but this doesn’t seem to be the case with Ethereum.
But then again, that can all change in an instant, especially if the US Securities and Exchange Commission does indeed approve a spot Ethereum ETF soon. Should that happen, ETH’s price could skyrocket even further with the growing number of users and investors.