Ethereum Active Addresses In Rapid Rally as Layer-2 Ecosystem Records New TVL Milestone

Ethereum (ETH), the second-biggest cryptocurrency, is leading other Layer-1 blockchains in a key metric. Data show soaring active addresses on the Ethereum mainnet and leading Layer-2 networks.

Ethereum Active Addresses Surpass 5 Million as Network Usage Soars Despite Declining ETH Price

Ethereum's active addresses have hit a new all-time high, surpassing 5 million across the mainnet and leading Layer-2 (L2) platforms. This marks a significant increase in blockchain usage, despite ETH prices declining on the daily chart.

According to data from the crypto analytics platform IntoTheBlock, Ethereum's active addresses have surged to a record level. An address is considered active if it executes a transaction, either sending or receiving funds, within a specific period.

Hence, active addresses indicate the total number of transacting users on the network. Growing active addresses are usually a sign of increased blockchain usage, which can be a valuable metric for monitoring network activity over time. This metric is often used as a leading indicator for price action, as higher network utilization may lead to greater demand for the blockchain's native token.

However, the latest surge in network usage has not yet translated into positive price performance for ETH. At the time of writing, ETH's price was trading at $2,628, down 1.9% over the past 24 hours. Ethereum has also given up its weekly gains, falling 1.28% over the past week.

This surge in address activity could also be due to increased selling pressure for ETH over the past few days, with investors accumulating more coins at lower prices to maximize profits when momentum shifts. This helped push network activity to local highs.

Base Surges in Speed, Arbitrum Dominates TVL Among Ethereum L2s

Across the Ethereum L2 ecosystem, Coinbase's Base led in daily speed and other performance metrics. Within the last 24 hours, Base clocked a transaction speed of 69.59 Transactions Per Second (TPS), according to L2Beat. Base also emerged as the highest L2 player, boasting a 30-day transaction count of 160.7 million.

Moreover, Base ranks second to Arbitrum as the largest Ethereum L2 by Total Value Locked (TVL). As of October 22, the TVL of all Ethereum L2 solutions reached $38.37 billion, surging 217% from a year ago.

Out of this, Arbitrum recorded the highest TVL at $14.06 billion. Base followed with $7.74 billion, and Optimism Mainnet came third with $6.32 billion.

TVL is a cryptocurrency metric used to measure the total value of digital assets staked on a particular Decentralized Finance (DeFi) platform. A higher TVL indicates a secure and trusted platform.

ETH Price Prediction: Where Next?

Ethereum's price is expected to rise with increasing active addresses. However, the 24-hour trading volume decreased by 16.9% to $15.9 billion, suggesting that investors are pessimistic. The sentiment in ETH's price prediction is neutral, with the Fear and Greed Index indicating Greed at 70.

Crypto analysts predict that ETH could range between $2,558.28 and $2,725.58 in October 2024. Meanwhile, Ethereum co-creator Vitalik Buterin aims to scale the network to over 100,000 TPS as part of a long-term strategy focusing on both Layer 1 and Layer 2 networks.

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