On Monday, September 9, 2024, Santiment, a popular social metrics platform, revealed in an X post that Ethereum (ETH) “hit a 4-month high in network growth” on Sunday.
According to the post, 126,210 new wallets were added to the Ethereum Blockchain on Sunday, September 8, leading to an increase in network activity.
This also marks the highest Ethereum network growth activity in a single day since May 5, 2024.
What makes the network activity surge more surprising is the fact that it occurred on a Sunday,
The least-active day of the week.
This impressive one-day network growth indicates an increase in network utility as well as a potential price rally.
The return of the Ethereum whales may also be a reason for the growing network. For instance, Ethereum whales reportedly accumulated 5,000 Ethereum, which is worth about $11.46M at the current ETH price.
Ethereum Price On The Decline
Despite the increase in network activity on the Ethereum blockchain, the price of Ether (ETH) is on the decline.
However, as earlier predicted that the one-day network growth may trigger a potential price rally, the price of Ethereum saw a slightly positive move in the last 24 hours, soaring about 1.35%, reducing its end-of-the-week losses to 4.81%.
According to data from Tradingview, the price of Ethereum is currently at $2,321, with an intraday peak of $2,337 before dropping. ETH closed last week with a bearish move – about a 5.28% decline.
While the recent rise in network growth may influence a positive price growth, it is important to always carry out independent research before investing, as the cryptocurrency market is very volatile and can easily change direction.
Increasing Ethereum (ETH) Token Dump Puts Crucial Supports At Risk
Recently, BTCRepublic reported that Ethereum wallets linked to the Ethereum Foundation and Vitalik Buterin have been selling ETH aggressively, which drew the attention of the crypto community to a potential token dump.
In August, it was reported that an ETH wallet linked to Vitalik received 3,800 ETH (~$10M). But the wallet has been gradually selling its holdings since then.
Also, a crypto wallet associated with the Ethereum Foundation dumped 1,000 ETH tokens, which is worth over $2.39M, on Friday.
However, despite his obvious declining ETH holdings, Vitalik denied all these dumping charges against him last week.
Failing Ethereum ETF
According to data from SoSoValue, the spot Ethereum exchange-traded funds (ETFs) experienced a persistent outflow in mid-August, amounting to over $5.99M, as reported by BTCRepublic. This brought the net ETH ETFs outflows to $568.3M.
When compared to spot Bitcoin ETFs, spot Ethereum ETFs have consistently underperformed since its approval in January last year.
