From Pepe to ETH: Traders Flock to Ethereum, On-Chain Activity Signals Promising Trend
According to a prominent analytics firm, there are optimistic indicators on the Ethereum (ETH) blockchain as traders flock to the leading smart contract platform.
Santiment has observed a notable increase in active deposits on Ethereum, which measures the number of unique deposit addresses on an exchange that were active on a given day.
The firm reports that Ethereum has reached a milestone of 20,000 active deposits, marking the first occurrence since November 2021. Traders are reportedly shifting their profits from the extremely popular meme coin Pepe (PEPE) to ETH.
The number of exchange addresses participating in network activities is presently at its peak since November 2021. As predicted, ETH is showing indications of independent movement and is close to exceeding the $2,000 threshold once more.
🚀 Updating our report on #Ethereum's sky-high active deposits, exchange addresses interacting on the network is now at its highest level since November, 2021. As expected, $ETH is showing decoupling signs and on the cusp of breaking $2k once again. https://t.co/zYjY7669yj https://t.co/dQlKsTVyt2 pic.twitter.com/2nMXOUGgYC
— Santiment (@santimentfeed) May 5, 2023
Pepe, a meme coin with a frog theme, has experienced a staggering surge of 4,543% from its all-time low of $0.00000005, a record set in less than three weeks.
At the time of writing, Ethereum is being traded at $1,928.
READ MORE: Bitcoin: Unveiling the Resilient Market Dynamics
In a broader analysis of the cryptocurrency markets, Santiment suggests that digital assets are starting to detach from the stock market. The firm notes that the crypto market has remained relatively stable following the recent interest rate hike by the Federal Reserve.
The Federal Reserve carried out an anticipated move by increasing interest rates by 25 basis points during the recent Federal Open Market Committee meeting. Over the span of 14 months, rates have experienced a significant 5% rise as the United States continues to combat inflation. Notably, there has been a decline in the correlation between cryptocurrency and these developments, which is viewed as a positive indication.
🏦 As expected, the #Fed raised interest rates by 25bps an hour ago in the #FOMC meeting. Rates have now been raised by a jarring 5% in 14 months as the US continues to battle inflation. Crypto's correlation to these events has lessened, a positive signal. https://t.co/QYYYSNDOjD pic.twitter.com/lcPDYVk4pL
— Santiment (@santimentfeed) May 3, 2023
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
