Recent on-chain data reveals a significant surge in Ethereum’s network activity, potentially indicating a further rally on the horizon. Analytics firm Santiment reported an uplift in Ethereum’s Transaction Volume and Whale Transaction Count, two crucial metrics linked to network activity.
Transaction Volume tracks the total amount of Ethereum being transferred across the network in USD. A high value suggests robust activity, with a large number of coins being exchanged. Conversely, a low indicator points to reduced interest, implying that holders are not moving significant amounts of ETH.
Recent data indicates that Ethereum’s Transaction Volume has seen a sharp rise, signaling increased interest in the cryptocurrency as it rides a price rally. This uptick suggests a constructive development, as sustainable rallies typically require increasing network activity. Historical data shows that price surges without a corresponding rise in Transaction Volume often fizzle out quickly.
Additionally, the Whale Transaction Count, which measures transfers over $100,000, has also spiked. This metric typically reflects the activity of large investors or “whales.” The recent increase suggests that not only smaller investors but also big-money players are showing heightened interest in Ethereum.
However, whether these transactions are for buying or selling remains unclear from these indicators alone. Given Ethereum’s recent rally, it is likely that the activity has been largely driven by accumulation.
Santiment also noted that any growth in Bitcoin could see profits redistributed into Ethereum, potentially pushing it toward its all-time high given the current healthy network activity.
In terms of price, Ethereum has surged over 27% in the past week, breaking beyond the $3,150 mark. This bullish momentum has coincided with the increased network activity, underscoring the asset’s current strength in the market.
