[Analysis] "Ethereum activity at highest in 2 years… Market·on-chain divergence widens"
Summary
- It said the Ethereum network's Transfer Count reached 1.06 million, the highest in 2 years.
- Although Ethereum price recently fell from $4,500 to $2,900, on-chain activity surged, creating a divergence between market and on-chain indicators.
- CryptoOnChain suggested two possibilities for the surge: panic selling (panic sell) or activation of on-chain activities such as DeFi and NFT issuance.
Ethereum (ETH) network activity has reached its highest level in two years.
A CryptoOnChain contributor to CryptoQuant said on the 31st (local time) via CryptoQuant, "As of the 29th, the Ethereum network's 'Transfer Count' surged to 1.06 million," adding, "the highest since October 2023." Transfer Count is an on-chain metric that shows how often tokens or specific addresses have been transferred on the blockchain.
CryptoOnChain noted that "(Transfer Count) showed high volatility throughout Q4 this year." CryptoOnChain analyzed, "Meanwhile, Ethereum's price has sharply corrected from the year's high around $4,500 to the $2,900 level," and added, "Nonetheless, the surge in Transfer Count suggests a divergence between market price and on-chain utilization."
It went on, "Generally, when Transfer Count surges during a price decline, it can be interpreted in two scenarios." CryptoOnChain said, "One is panic selling close to a sell-off," and "the other is on-chain activity becoming active—such as DeFi and non-fungible token (NFT) issuance—due to falling gas fees." It added, "This surge surpasses all highs of 2024 and 2025," noting, "meaning on-chain asset turnover has become very strong."
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
![Will the Iran war drag on… Soaring oil prices freeze risk appetite [New York Stock Market Briefing]](https://media.bloomingbit.io/PROD/news/6dcbb4c5-634b-422e-aa22-d301a1c13934.webp?w=250)
