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Ethereum’s Active Addresses Jump 37% – Is Institutional and DeFi Demand Fueling the Surge?
The Ethereum blockchain has witnessed a significant surge in its average active addresses, rising by an astonishing 37%. This sudden increase in network activity has sparked curiosity among investors, as the market is eager to understand whether institutional and decentralized finance (DeFi) demand are driving this substantial growth.
According to recent data from IntoTheBlock, Ethereum’s average number of active addresses surpassed 620,000 last week, reaching a peak unseen since March 2024. While the metric may not be entirely accurate due to the possibility that a single entity can open multiple accounts and skew the results, the steady growth suggests an unprecedented level of adoption within the network.
One potential catalyst behind this surge could be the increased interest in decentralized finance (DeFi) applications. Ethereum has been one of the primary platforms for DeFi solutions, with lending platform Aave and liquid staking platform Lido dominating the landscape by commanding a substantial share of ETH’s total value locked (TVL). Since these platforms are institutions’ favorites, it is plausible to assume that institutional investors may be behind this surge in network activity.
However, recent data suggests that individual investors may not be entirely responsible for this growth. World Liberty Finance (WLFI), an organization backed by former US President Donald Trump’s company, WLFI, has reportedly been aggressively buying Ethereum. This decision exposed the firm to a massive unrealized loss of $14.9 million after ETH’s price plummeted 8% to $3,000.
Despite this setback, the crypto market remains optimistic about the future prospects of Ethereum, as it successfully defended its support zone at $3,000. Nonetheless, with the upcoming FOMC meeting posing a risk to the bearish trend, investors should be cautious in their decisions.
This growth could also be attributed to institutional investment.
Source: ambcrypto.com
