Ethereum: New Wallet Addresses Decline Despite Price Surge – What’s Next?

Despite a price surge, Ethereum is witnessing a decline in new wallet addresses.

Data from TheBlock shows that new Ethereum addresses have plummeted over 44% in the last three months, falling from a peak of around 138,620 on June 27, 2024, to about 78,390 now.

Initially, on June 1, 2024, there were about 100,680 new addresses before they rose by over 37% to the peak. However, subsequent months saw a decrease, with only 87,360 new addresses on August 1, a 37% drop from the June peak. Total active addresses fell from 722,080 to 615,180, marking a 15% decline.

Analysts suggest that the launch of spot Ethereum ETFs in the U.S. has diverted interest from buying Ethereum directly, with some users shifting focus to Solana’s meme coins. Although new addresses increased slightly to 102,710 on September 1, the count has since dropped back to 78,390.

Currently, Ethereum’s price stands at $2,630, a 10.68% increase from last week and 15% year-to-date. Large holders are capitalizing on the price rise, with significant sell-offs, including one whale depositing over 3,510 ETH into Kraken.

This selling activity raises concerns about potential hindrances to future price increases, although some analysts see further price growth potential. One independent analyst highlighted that if Ethereum surpasses $2,750, it could be a strong buying opportunity.