Ethereum Surges to 1.29 Million Active Addresses, But Security Threats Persist – What You Should Know

Ethereum’s [ETH] network activity is reaching record levels. According to a post on X from Token Terminal, the daily number of active addresses now exceeds that of Layer 2 solutions. As of January 16, the count of active addresses stood at 1.297 million, according to data from Etherscan.

Key Takeaways

Ethereum's network has recently seen a spike in active addresses, reaching 1.297 million.
The increase is partially due to stablecoin transactions, with many new addresses receiving minimal amounts.
Security risks, such as address poisoning, continue to pose threats to users.
The successful Fusaka upgrade has made transactions much cheaper, promoting growth in the Ethereum network.
Institutional investment in Ethereum remains strong, with a significant accumulation of ETH in late 2025.

Ethereum’s Long-Term Case Holds Firm, Even as Address Poisoning Skews Metrics

Ethereum Mainnet

Source: Token Terminal on X

As of the time of writing, this figure has decreased to 945,000. Nevertheless, the overarching trend is clear. The completion of the Fusaka upgrade in early December significantly reduced network transfer fees by nearly six times, resulting in several ripple effects, as noted by blockchain security expert Andrey Sergeenkov.

Understanding Address Dusting and Poisoning on Ethereum

The expert identified that the notable rise in active addresses and on-chain transactions can be attributed to stablecoin transfers. Notably, 67% of the new addresses received initial amounts of less than one dollar through their first stablecoin transaction.

Sergeenkov termed these small amounts “dust” and discovered that some smart contracts facilitate the widespread distribution of this so-called poisoning dust.

This is known as address poisoning. In such attacks, malicious actors send negligible amounts of tokens to wallets that closely resemble their own addresses. When users later copy an address from their transaction history without paying close attention, they may inadvertently send funds directly to the attacker.

Despite a low conversion rate of only 0.01%, attackers have managed to steal $740,000 from 116 addresses, with $509,000 coming from a single victim.

Evaluating Ethereum's Fundamentals

The Fusaka upgrade is viewed as a success, as affordable transactions are essential for any network's growth. This transition is a crucial step toward greater “institutionalization.” According to AMBCrypto, Ethereum currently leads the real-world asset (RWA) sector, holding approximately 60% of the market share.

Notably, significant ETH accumulation from firms such as Bitmine indicates positive momentum. In the fourth quarter of 2025, Ethereum’s treasuries added 1.2 million ETH. Furthermore, on-chain metrics suggest a dominance of buyers in spot markets, highlighting a trend of absorption rather than distribution.

Bitwise CIO Matt Hougan argues that the current disconnect between price and fundamentals often signifies a bottoming phase in bear markets.

Final Thoughts

As Ethereum continues to develop, both user activity and security challenges are likely to evolve. Staying informed will be key for all participants in the cryptocurrency space.