<\/p>\n
- \n
- The Ethereum network saw a 28% jump in the creation of daily addresses.\u00a0<\/em><\/li>\n
- The increase in spot prices failed to move the derivatives market.<\/em><\/li>\n<\/ul>\n
Ethereum [ETH]<\/a> has recovered well since its precipitous fall on the 22nd of January, which saw the second-largest asset lose 10% of its value.<\/p>\n
The second-largest asset clocked a steady growth of 4.74% over the past week, AMBCrypto spotted using CoinMarketCap data.<\/p>\n
During the uptrend, ETH also scaled up to $2,380. However, profit-taking by weak hands pulled ETH lower to $2,339 at the time of writing.<\/p>\n
<\/p>\n![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2024\/01\/ETH_1M_graph_coinmarketcap.jpeg\")
<\/p>\n<\/a><\/p>\n
Source: CoinMarketCap<\/p>\n<\/div>\n
Ethereum sees high network utilization<\/h4>\n
The price gains came alongside sharp growth in on-chain activity. According to on-chain analytics firm Santiment, 484K unique addresses interacted with the network on average in the last week.<\/p>\n
The network growth was also promising. About 101K new addresses were getting created on the network each day. In fact, the daily rate of new address creation was 28% faster than what it was three months ago.<\/p>\n
<\/p>\n![\"\"](\"\/\/www.w3.org\/2000\/svg'%20viewBox='0%200%203840%201300'%3E%3C\/svg%3E\")
<\/p>\n![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2024\/01\/Ethereum-ETH-14.12.42-31-Jan-2024.png\")
<\/p>\n<\/a><\/p>\n
Source: Santiment<\/p>\n<\/div>\n
Another important marker of strong network activity \u2014 the number of transactions \u2014 spiked 10% over the week.<\/p>\n
Analyzing these metrics, it became clear that ETH\u2019s growing market cap was built on the foundations of increasing network utility.<\/p>\n
<\/p>\n<\/p>\n![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2024\/01\/Ethereum-ETH-14.30.39-31-Jan-2024.png\")
<\/p>\n<\/a><\/p>\n
Source: Santiment<\/p>\n<\/div>\n
A bullish signal for ETH in the long term?<\/h4>\n
Over the years, a lot of criticism has been directed at projects that saw an increase in the market value of their tokens without much happening on their networks. A classic example could be that of meme coins.<\/p>\n
In the case of Ethereum, the ratio of its network valuation to its transaction volume has dropped steadily in recent months, signaling an undervalued asset.<\/p>\n
This is interpreted as a bullish signal, as it means that the asset has high growth potential. Notice how ETH\u2019s price embarked on a strong uptrend while the ratio was going down.<\/p>\n
<\/p>\n![\"\"](\"\/\/www.w3.org\/2000\/svg'%20viewBox='0%200%202560%20867'%3E%3C\/svg%3E\")
<\/p>\n![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2024\/01\/Ethereum-ETH-14.45.58-31-Jan-2024.png\")
<\/p>\n<\/a><\/p>\n
Source: Santiment<\/p>\n<\/div>\n
What to expect next?<\/h4>\n
The increase in the spot prices failed to move the derivatives market. According to AMBCrypto\u2019s analysis of Coinglass\u2019 data, ETH\u2019s Open Interest (OI) at press time was 5.2% lower than what it was a week ago.<\/p>\n
<\/p>\n![\"\"](\"\/\/www.w3.org\/2000\/svg'%20viewBox='0%200%201137%20362'%3E%3C\/svg%3E\")
<\/p>\n![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2024\/01\/ETH-futures-OI-1.jpg\")
<\/p>\n<\/a><\/p>\n
Source: Coinglass<\/p>\n<\/div>\n
\nIs your portfolio green? Check out the\u00a0ETH Profit Calculator<\/a><\/p>\n
\nHowever, things could change pretty soon as the market sentiment shifted from neutral to greed in the last two days, according to AMBCrypto\u2019s analysis of Hyblock Capital data.<\/p>\n
The FOMO could ultimately lead to more ETH buying in the days to come.<\/p>\n
- The increase in spot prices failed to move the derivatives market.<\/em><\/li>\n<\/ul>\n
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2024\/01\/ETHUSDT_2024-01-31_15-04-20.png\")
<\/p>\n