Ethereum saw a surge in the number of new addresses created on Saturday.
A tweet by on-chain analytics firm Santiment Feed on Sunday disclosed that 135,780 new Ethereum addresses had been created on Saturday, surpassing the previous high of Jan 3rd by 11.1%.
According to Santiment, it will be unsurprising to see a price breakout following this surge.
“Ethereum saw a surge of new addresses created Saturday, with 135,780 new $ETH addresses popping up on the network,” Santiment tweeted. “This is 11.1% more network growth than the next highest of 2022 (Jan 3rd). Utility rises commonly foreshadow potential asset breakouts.”
While Santiment fails to explain the spike, users in the comment speculate that it may be due to the XEN crypto launch on the Ethereum network. The latest crypto project on Ethereum has attracted a lot of attention, with over 100k wallets minting the token. Notably, XEN currently accounts for over 40% of Ethereum’s gas consumption, according to data from Etherscan.
— Jack Levin (@mrJackLevin) October 9, 2022
It bears mentioning that post-Merge, the Ethereum network has been unable to deliver on its promise to become deflationary. Notably, this has been widely due to the decreasing transactions in the bear market, leaving network inflation at about 0.21%. However, since the XEN launch on Saturday, this figure has declined and sits at about 0.13%.
XEN is a crypto project with no initial supply and no supply cap. It runs on a proof of participation consensus mechanism and allows users to mint tokens by paying gas fees alone.
Ethereum is currently trading at the $1,315.97 price point, about 2% up in the last seven days. The asset has been under selling pressure in recent weeks with increased inflow to exchanges. IntoTheBlock insights show that holders sent an additional $216 million worth of Ethereum to exchanges last week.