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Ethereum (ETH) Price Primed for Rebound, Here Are 3 Factors That Can Drive This Growth

Mon, 02/06/2023 - 15:28
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Godfrey Benjamin
Ethereum address count may fuel its midterm growth rebound
Ethereum (ETH) Price Primed for Rebound, Here Are 3 Factors That Can Drive This Growth
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The Ethereum (ETH) price is currently consolidating as the combined crypto market cap slipped to $1.06 trillion after a 1.08% slump. At the time of writing, Ethereum is changing hands at $1,628.35, down 1.33% over the past 24 hours, but the coin still maintains a 2.98% rise in the past week.

While the latest Ethereum price analysis by U.Today suggests market bulls can take advantage of the current trend to restock their Ether bags, a number of on-chain trends can help revive the price if they are sustained.

According to on-chain analytics platform Glassnode, the number of non-zero addresses hit a new all-time high (ATH) of 93,530,348. This data shows more retail investors are stacking up on the digital currency, a trend that can subtly help pump the price of Ether if sustained.

While the number of small Ethereum holders is rising, the analytics platform also shows new addresses are making their way onto the network. Per the on-chain data, the new addresses topped a one-month-all-time high of 2,971.881 earlier today.

Ethereum (ETH): Shanghai Hard Fork Causes Concern Among Developers, Here Are Reasons

Riding on its deflationary feature

Since the start of the year, the crypto industry has benefited from an immense surge in investors looking to recoup losses incurred with the implosion of the FTX Derivatives Exchange. Besides the new address count and growing retail presence, Ethereum is also set to benefit from its deflationary status in the mid- to long term.

With the growing activities of smart contracts on Ethereum, the total burn rate for Ether spent as fees are growing, and this trend is bound to continue as more protocols launch leveraging the forthcoming Shanghai hard fork.

With advanced security and usability all sandwiched within responsible energy utilization, Ethereum is billed to see further adoption that may translate to price growth in the near future.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.