Ethereum [ETH] is currently benefitting from a wave of optimistic momentum, mirroring the recent upturn in the wider cryptocurrency market.
Despite not yet hitting its previous all-time peak, Ethereum has witnessed a notable surge. In the last few days, the alternative coin has climbed by more than 8%, hitting $2,872, as of the latest available data.
This surge represents a significant recovery, positioning the asset roughly 42.7% below its peak of $4,878 in November 2021.
The recent upticks have signaled a growing interest from investors and showcased Ethereum’s resilience as it continues to capture market attention amid Bitcoin’s recent upward trajectory.
Simultaneously, an intriguing development within the Ethereum network has been identified by a CryptoQuant analyst named Mac.D.
As per the analyst’s findings, following the outcome of the U.S. presidential election, a substantial $9.3 billion worth of ERC-20 stablecoins have moved into cryptocurrency exchanges.
This marks the second-largest influx of ERC-20 stablecoins since their inception.
Breaking down these deposits, Binance received approximately $4.3 billion, while Coinbase witnessed an inflow of around $3.4 billion, with the rest distributed among smaller exchanges.
Historically, substantial inflows of this scale have been associated with bullish market rallies, as was evident between September 2020 and February 2021.
If this pattern persists, Ethereum and the broader market could be gearing up for another bullish phase.
Increasing retail interest and network engagement in Ethereum
Alongside the surge in ERC-20 stablecoin inflows, Ethereum has seen a promising uptick in retail activity.
Data from Glassnode has shown a rise in Ethereum’s active addresses, a crucial metric for measuring retail interest and network activity.
Following a drop below 400,000 active addresses in late October, the number has since surpassed 430,000.
This uptick indicates heightened network activity, hinting at renewed interest from individual users and a potential increase in network demand.
The growth in active addresses could have significant implications for Ethereum’s price trends.
Increased activity typically indicates higher demand and increased network utilization, potentially exerting upward pressure on the asset’s valuation.
Enhanced engagement from retail investors in Ethereum can enhance liquidity and price stability while demonstrating a growing confidence in the market.
This trend, coupled with the rising inflows of stablecoins and robust exchange activity, presents an encouraging outlook for Ethereum’s short-term potential.