Despite a price surge, Ethereum continues to see a drop in wallet addresses. According to TheBlock’s data, new ETH addresses have dropped by over 44% in the last three months. As of June 27, 2024, the number of new addresses on the network peaked at 138.62k. However, three months later, the number has dropped to 78.39k. 

New Ethereum addresses plummet to less than 80k

On June 1, 2024, there were only about 100,680 new Ethereum addresses on the network before the figure rose by over 37.7% to 138,620 new addresses on June 27.  

Since then, the Ethereum network has seen a series of declines in new addresses. On August 1, there were just 87,360 new ETH addresses, representing a 37% slip from June 27. Additionally, ETH’s total active addresses had tumbled to 615,180 from 722,080 on June 27, culminating in a 15% drop.

At the time, analysts attributed the drop in Ethereum addresses to the launch of spot Ether ETFs in the United States, stating investors preferred trading on the ETFs instead of purchasing Ethereum directly. Besides, its competitor Solana had seen a rise in new addresses, with enthusiasts hinting consumer interest shifts towards Solana’s new meme coins.

On September 1st, the number of new ETH addresses rose slightly to 102,710. However, as of September 25, the number had fallen to 78,390, marking a 43% drop from June 27 and a 23% fall from the month’s start. 

Ethereum price climbs with holders continuously selling their assets

Multiple whales with assets on Ethereum’s blockchain have taken advantage of the current price rally to sell off their ETH. For instance, on September 23, a whale deposited over 3510 ETH into Kraken on September 23. Shortly before this, another whale had taken out 150,000 ETH and deposited it into other exchanges.

Currently, at $2,630, ETH’s price is up 10.68% from last week and up 15% year-to-date. The rise in ETH’s price has invited commentaries, with some pointing out that whales selling off their tokens could derail further price increases, especially if demand for the token is low, while others hinted at further price surges for the token.

Kingpin Crypto, an independent analyst,  remarked:

ETH Weekly looks incredible, in terms of price clearly being in an area of demand. If the price can get back above $2750, it is an absolute no-brainer to go all in into Ethereum imo.

~Kingpin Crypto

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