Ethereum Experiences Growth in New Users as Activity Retention Soars: Insights from Glassnode

Ethereum is witnessing a significant increase in new users, with on-chain analytics indicating that user activity retention has nearly doubled in the last month, as reported by Glassnode.

Key Takeaways

Ethereum has seen a substantial rise in new users, with both activity retention and the number of active addresses nearly doubling in the past month.
Daily transactions have reached record levels, showcasing a year-over-year increase in active addresses.
The growth is fueled by lower transaction fees and an uptick in stablecoin adoption.

According to Glassnode, there has been a notable increase in first-time active addresses in the past 30 days, suggesting that the influx of users is primarily made up of newcomers, rather than existing network participants.

The analytics firm also highlighted that month-over-month activity retention has surged among new users, indicating that these new wallets are not only engaging with Ethereum but are also continuing to utilize the platform.

Ethereum Sees Surge in New Users as Activity Retention Doubles: Glassnode

Ethereum Network Activity Soars with New Users and Increased Transactions

Active addresses on the Ethereum network have surged from just over 4 million to nearly 8 million within a month.

Activity retention is a key metric that assesses whether users stay engaged over time, offering insights into the sustainability of network growth beyond temporary increases.

Further data suggests a similar upward trend across the network. Over the past year, Ethereum's active addresses have more than doubled, increasing from approximately 410,000 to over 1 million, according to Etherscan data.

Daily transaction volumes have also climbed dramatically, reaching a record 2.8 million on Thursday. This figure reflects a 125% increase compared to transaction levels from a year ago.

Analysts believe that this growth is largely driven by a higher usage of stablecoins and lower transaction fees. As noted by the macroeconomic outlet Milk Road, this trend reflects Ethereum's strategic transition toward executing transactions on layer-2 networks while maintaining settlement on the main blockchain.

This approach has resulted in reduced fees while preserving security, increasing the network's accessibility for everyday transactions.

Data from Token Terminal indicates that stablecoin activity on Ethereum has hit all-time highs concurrently with fees dropping to levels not seen in years.

These factors seem to encourage more frequent utilization of the network, especially within the realms of payment processing and decentralized finance (DeFi).

Market observers note that the improved on-chain metrics are fostering a more positive sentiment towards Ether.

Recently, Ether reached a two-month peak close to $3,400 before settling back to around $3,300 in early Friday trading, as investors evaluate whether the spike in activity will lead to sustained price appreciation.

Buterin Asserts Ethereum Has Overcome the Blockchain Trilemma

Last week, Ethereum co-founder Vitalik Buterin stated that the Ethereum network has successfully addressed the blockchain trilemma, achieving a goal that many in the crypto community have long considered unreachable.

Buterin claimed that recent and forthcoming upgrades have finally harmonized the principles of decentralization, security, and scalability through code that is actively implemented.

Central to this assertion are two significant technological advancements, including peer data availability sampling (PeerDAS) and zero-knowledge Ethereum virtual machines (zkEVMs).

Additionally, Ethereum’s staking dynamics have undergone a significant change as the number of validator exits has decreased and new capital has begun to flow back into long-term staking periods, indicating a shift in the market behavior among larger Ether holders.