The Ethereum network is recording unprecedented activity: the number of active addresses based on the 100-day simple moving average (SMA 100) has risen to an all-time high of around 587,000. Despite the decline in Ethereum’s market value, this metric shows a consistent increase, which is unusual for the market.
This is reported by Business • Media
Divergence Between On-Chain Activity and Price
Analysts note a unique situation: the growth in on-chain activity, which has traditionally had a close relationship with the asset’s price, is currently not accompanied by a similar increase in value. This deviation from the usual positive correlation in the market highlights the current atypical dynamics.
“The increase in the number of active addresses indicates a rise in network usage, expansion of adoption, and growth of ecosystem activity. This may suggest that users continue to interact with the blockchain regardless of short-term market fluctuations,” they added.
Assessment of Ethereum’s Undervaluation
Experts believe that such divergence between fundamental indicators and market price may indicate the undervaluation of the cryptocurrency. Historically, Ethereum’s price has often correlated with the level of network usage in the long term. If this relationship is restored, Ethereum’s market value could rise in line with increased on-chain activity in the medium term.
At the time of writing, Ethereum is trading near the $2300 mark. The price dynamics continue to attract the attention of market participants.
Previously, analysts speculated that Ethereum could reach the $250,000 mark in the future if the concept of “productive money” continues to develop within this ecosystem.
