Levels of activity on Ethereum have peaked to their highest in two years, going by one metric.
The seven-day moving average of the number of active ether addresses rose to 405,014 on Friday – a threshold not seen since May 2018, according to data provided by the blockchain analytics firm Glassnode.
Active addresses are the number of unique addresses that are active in the network either as a sender or receiver. Glassnode takes into account only those addresses that were active in successful transactions.Ethereum active addressesSource: Glassnode
As of Monday, the seven-day average was down slightly to 390,162. That’s still a 115% growth from the low of 180,750 seen on Jan. 30.
The increased ether activity could be associated with the explosive growth of Ethereum-based decentralized finance (DeFi) platforms, as well as the number of daily tether (USDT) transactions on the network.
At press time, about 3.1 million ether were locked in various DeFi applications, according to data source defipulse.com. Meanwhile, the number of daily USDT – the most used stablecoin – transactions on ether has increased by over 400% this year, as per CoinMetrics.
The heightened demand for ether from such use cases is expected by many to fuel a major bull run. So far, however, the cryptocurrency has struggled to decouple from bitcoin, the leading cryptocurrency by market value.Daily chart: ETH/USD and BTC/USDSource: TradingView
Ether, the second-largest cryptocurrency, is moving pretty much in tandem with bitcoin. The ether-bitcoin one-year correlation has risen to 89%, the highest on record, according to crypto derivatives research firm Skew.
Some observers would argue that address growth is not a reliable indicator of adoption, as a single user can own multiple addresses. Crypto exchanges also store coins belonging to traders in multiple addresses.
While that’s true, ether’s active addresses metric is ...