Ethereum

Top Reason Behind Irregular Spike In Ethereum Address Activity!

Written by: Elena R

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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Jul 28, 2022

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The following week is too crucial for the crypto market which will see an impact of either positive or negative. Two of the fundamental events will play an important role in the day to come.

The first is the FOMC meeting which will see the Federal Reserve increasing an interest rate by 0.75% and the next is the Federal reserve’s revelation of the GDP report.

This has resulted in Ethereum, the second largest cryptocurrency by market cap, seeing a surge in its address activity. It’s just not these events, there are a few other unexpected factors.

When traders and investors of are considered, their activity has seen an uptrend which is seen in network fees just before the release of the GDP report.

It’s always seen that whenever there is any major upcoming event, investors usually hedge their holdings and transfer them to exchanges if they decide to sell their currencies as early as possible.

On the contrary, as per on-chain metrics data, Ethereum fees are still declining and this indicates that traders and long-term investors don’t feel it’s important to protect themselves.

Reason For ETH Address Activity Spike

Yesterday, July 26, the crypto space saw one of the highest address activity across the Ethereum network, and this is recorded as one of the biggest moves of the metric in ETH’s history.

This kind of unexpected and massive rise in the ETH activity attracts some kind of speculation as it’s not a normal scenario and it suggests that something is missing.

Among such speculations, airdrop farming stands as the top reason and next is the migration of wallets which could have ignited the spike in the number of Ethereum activities.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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