- Analysts from CryptoQuant suggest Ethereum could surpass $5,000, bolstered by strong investor demand and positive on-chain metrics.
- Ethereum network activity robust, with daily transactions between 6.5 to 7.5 million in 2024, up from 5 million in 2023.
Ethereum is experiencing significant network expansion, marking the most substantial growth since April, as evidenced by daily wallet creation statistics. According to data from the on-chain analytics platform Santiment, approximately 130,200 new Ethereum wallets are being created each day in December, the highest rate observed since earlier this year.
The resurgence in wallet creation coincides with Ethereum’s price nearing the $4,000 mark. Over the past week, the broader cryptocurrency market has seen robust activity, with Ethereum climbing from a weekly low of $3,501 to highs nearing $3,945.
Despite these gains, Ethereum has yet to breach the $4,000 resistance level, hovering around $3,867, down 1.14% over the last 24 hours at the time of reporting.
📈 Ethereum is seeing an 8-month high level of new wallets created. With an average of 130.2K addresses newly popping up on the network every day so far in December, ETH is seeing renewed interest it hasn't seen since April. pic.twitter.com/sLPy8yeWtl
— Santiment (@santimentfeed) December 13, 2024
Market analysts from CryptoQuant have posited that Ethereum could potentially exceed $5,000, driven by robust investor demand and positive on-chain metrics.
$ETH could break above $5k as demand and supply dynamics strengthen.
The realized price upper band, currently at $5.2k, matches the level seen during the 2021 bull run peak, signaling strong potential for further growth. pic.twitter.com/AOwgAbltS8
— CryptoQuant.com (@cryptoquant_com) December 13, 2024
They noted that the “realized price upper range,” currently at $5,200, aligns with the peak prices of the 2021 bull run, suggesting a strong potential for further price increases.
Furthermore, Ethereum’s network activity is on an upward trajectory. Total daily transactions have maintained between 6.5 to 7.5 million throughout most of 2024, a significant increase from the 5 million daily transactions recorded in 2023.
This heightened activity is complemented by record inflows into Ethereum-based exchange-traded funds (ETFs), which saw their highest weekly inflow since their inception, totaling $854 million.
The combination of increasing wallet creations, sustained high transaction volumes, and substantial capital inflows into ETFs paints a promising picture for Ethereum’s ecosystem. This holistic growth not only reflects heightened market activity but also underscores the continuing confidence among investors and users in Ethereum’s long-term value and utility.
As Ethereum continues to push towards and possibly beyond the $4,000 mark, the broader implications for the cryptocurrency market remain significant. With its robust network activity and increasing adoption.
