Ethereum Adoption Grows as First-Time Users Increase Sharply

The Ethereum (ETH) network has seen a significant increase in wallet creation, indicating new participation. This rise suggests a broader interest in ETH, driven by decentralized finance (DeFi), stablecoin transfers, NFTs, and new applications. It shows rising confidence in Ethereum among cryptocurrency users.

However, the sustainability of this growth depends on whether new users continue to interact with the network in the coming months.

Over the past month, Ethereum has seen a surge in new addresses interacting with the network for the first time. Ethereum’s month-over-month activity retention shows a spike in the “new” cohort, a metric that tracks wallets making their first interaction with the blockchain within a given period.

The spike in users over the past month stands out relative to recent months. It points to the addition of new participants to the Ethereum network rather than recycled activity.

The Distinction Matters

During periods of rising on-chain activity, this can indicate that the same users are moving funds more aggressively. However, the interaction of new users and the addition of new wallets suggests broader interest in Ethereum itself.

This rise in wallet usage comes as ETH stabilizes near the $3,300 level. Historically, growth in Ethereum addresses has coincided with periods during which activity has expanded beyond a small network of users, as new users take time to onboard.

The durability of this trend depends on retention. If new wallets continue to increase in the coming months, it would signal a sustained network growth. Otherwise, it would just be a short-term market enthusiasm.