The Ethereum rally has continued, with a total gain of 50% since the beginning of October, implying that Ether’s on-chain and market data will follow and can provide additional signals to traders.
Performance of the Ethereum network
According to the data provided, Ethereum’s network activity has gained traction and has caught up with the coin’s price growth rates; it is currently at 48%. The increase in network activity is usually the foundation of any Ethereum rally.
Coins fueled solely by speculative interest may not exhibit the same network net growth behind each rally, but in the case of projects such as Ethereum, Solana, or Cardano, dApps and DeFi technologies attract more investment into technology.
📈 #Ethereum's latest address activity is up about 48% since the number of unique $ETH addresses bottomed out in late September. Volume, social, volume, network profit/loss, and address activity are all covered in @santimentfeed's latest insight. 👇 https://t.co/jAfjizTdPy pic.twitter.com/Es0DWEWa6a
— Santiment (@santimentfeed) November 12, 2021
NFT and decentralized finance are the two industries that have brought in more than $100 billion and more than $1 billion, respectively, by 2021. With the growth of the two industries and strong fund inflows into the cryptocurrency market, Ethereum’s capitalization is approaching that of Bitcoin.
As an indicator, network expansion
Network growth is typically used as a lagging indicator to confirm bullish cycles. It cannot be used to forecast whether a rally will continue or reverse.
Previously, the first drop in Ethereum network activity was observed at the end of October, which was followed by a minor 6 percent market correction. Following a brief sell-off, the price of Ethereum increased by 9 percent.
