The activity in the Ethereum network over the past 30 days is not due to existing users conducting more transactions, but rather a sharp increase in new wallets interacting for the first time.

Recently observed on-chain activity on Ethereum indicates a different pattern from usual cycles. According to Glassnode data, there has been a notable jump in the monthly activity retention rates in the "new" wallet category, meaning wallets that are transacting for the first time. This data reveals that the Ethereum network has experienced a significant influx of new users in the last 30 days.

This distinction points to a critical insight. An increase in on-chain activity is often caused by existing users moving funds more frequently. However, this time, the data shows that the majority of the activity comes from new addresses. This suggests that interest in Ethereum is not limited to trader behavior alone but is spreading to a broader user base.

Source of Interest: DeFi, stablecoins, and new applications
Glassnode’s data indicates that the rise in new wallets is driven by DeFi protocols, stablecoin transfers, NFT transactions, and new applications developed on Ethereum. Especially after the volatile market conditions at the end of the year, the risk appetite in the crypto market has recovered, and this has, albeit with a delay, reflected in increased Ethereum network usage.

While the Ethereum price stabilizes around $3,300, the network activity following price movements aligns with this trend. Historically, periods of sustained growth in new addresses correspond to phases where the network expands beyond a small group of users to a wider audience.

However, the critical question remains unanswered. Will these new wallets remain active on the network? If the user retention rate strengthens in the coming months, this could indicate a healthier and more sustainable increase in Ethereum’s usage. Otherwise, this surge might only be a short-term wave of interest.

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