Cryptocurrency Ethereum Reaches Peak for 2025, Despite a Slump to $3,500 Value
Ethereum's active addresses have surged to a yearly high, reaching 841,100 daily active addresses in July, despite the cryptocurrency's price dropping to around $3,500. This surge, observed by crypto analyst and trader Ali Martinez, suggests that increased network usage reflects heightened user engagement in decentralized finance (DeFi) activities, decentralized exchange (DEX) transactions, and trading volatility.
On August 1, Grayscale Ethereum Trust took in 1,989 ETH ($6,988,765), while Fidelity Ethereum Fund acquired 1,498 ETH ($5,263,534). These institutional investments demonstrate a continued interest in Ethereum, despite the price dip. In fact, BlackRock's ETHA ETF, one of the largest institutional investors in Ethereum, purchased over 8,000 ETH ($29.83 million) on August 1, accounting for the largest portion of these inflows.
Moreover, 10 spot Ethereum ETFs collectively absorbed 8,183 ETH ($29.83 million) on the same day. According to data from Lookonchain, BlackRock's ETHA accounted for 4,841 ETH valued at $17.65 million, and its total inflows this week amount to 224,833 ETH.
The rise in active addresses often precedes or accompanies market volatility, possibly as traders adjust positions ahead of or during price corrections. Additionally, the increase in active addresses is linked more to genuine ecosystem growth and adoption, as well as long-term holding trends, rather than short-term speculative trading.
This phenomenon can be attributed to increased on-chain activity in DeFi and DEX, heightened trading volatility and volume, institutional demand via Ethereum ETFs, a shift towards organic adoption and long-term holding, and potential market consolidation phase. These factors indicate that user and institutional engagement can grow independently of short-term price movements, driven by broader ecosystem development and diversified usage.
In conclusion, the disconnect between higher Ethereum active addresses and lower price levels underscores the resilience and potential of the Ethereum network, even in challenging market conditions. As the network continues to mature and expand its utility, it remains a significant player in the cryptocurrency landscape.
Despite the dropping price of Ethereum to around $3,500, its active addresses reached a yearly high in July. This surge, observed by crypto analyst Ali Martinez, was linked to increased network usage, specifically in decentralized finance (DeFi) activities, decentralized exchange (DEX) transactions, and trading volatility. In the following month, on August 1, institutional investments in Ethereum, such as Grayscale Ethereum Trust, Fidelity Ethereum Fund, and BlackRock's ETHA ETF, took in a collective 8,183 ETH, highlighting a continued interest in Ethereum. These factors collectively indicate that user and institutional engagement can grow independently of short-term price movements, driven by broader ecosystem development and diversified usage, emphasizing the resilience and potential of the Ethereum network.
