Recently, Ethereum's on-chain activity has reached record levels, drawing attention from analysts and market participants. The increase in active addresses is connected to network growth and the deflationary effects of EIP-1559.
Surge in Ethereum's On-Chain Activity
Ethereum's on-chain activity has surged to over 674,000 active addresses, marking a yearly high. This increase is attributed to user engagement and network growth.
Impact of EIP-1559 on ETH Supply
The change introduced by EIP-1559 exerts a deflationary impact on ETH supply, resulting in ETH being burned. This, in turn, reduces the available supply in the market.
Market Predictions for Ethereum
Analysts are monitoring potential price movements. They note key support levels around $3,200 to $3,350 and suggest that ETH could rise to $4,000 if the current momentum is maintained. The growing on-chain activity may mirror trends from 2021.
Thus, the rise in Ethereum's on-chain activity, driven by both user participation and EIP-1559 mechanisms, creates the potential for price growth and continued market interest.
