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- Vitalik comes to the rescue as the Ethereum network experiences a notable slowdown.
- Address activity indicates low demand for ETH as it continues to relinquish dominance.
Is it ether [ETH] Blockchain is experiencing a slow phase? It seems so, just like other networks like Solana [SOL] have partially succeeded in stealing the thunder in recent months.
This outcome may have prompted action from founder Vitalik Buterin.
Recent data suggests that the Ethereum network has experienced a decline in dominance. An outcome that has affected the flow of money in favor of other networks such as Solana and Bitcoin [BTC]and the Binance Smart Chain.
Source: TradingView
Unsurprisingly, Vitalik recently showed increased engagement on the X platform (formerly Twitter).
This has been especially evident since the last week of August, when there was a peak his messagesperhaps a step aimed at stimulating activity in the network.
The declining popularity of the Ethereum network is clearly visible in the number of large transactions. The network just ended August with the lowest number of daily large transactions since early 2015.
Source: IntoTheBlock
The number of large transactions reached 2,150 TXS, the lowest YTD figure it has reached to date. Please note that these were transactions worth $100,000 and above.
Ethereum addresses exhibit similar sentiments
Address balances also painted an interesting picture. The number of zero balances opened in September at the third highest level in the past eight months.
This was after a spike had been recorded since August 28 from around 85,000 addresses to over 171,000 addresses with no balance – just over double the number of addresses in the space of three days.
Source: IntoTheBlock
The number of active addresses dropped significantly between July and August. To put things into perspective, the Ethereum network reached over 800,000 daily active addresses in July.
This was the highest recorded address activity in 2024. Since then, the number of active addresses has fallen to 500,000, according to the latest data.
Impact on ETH
The waning excitement in the Ethereum network also mirrored ETH’s price action. The cryptocurrency has been in an accumulation zone for the past four weeks.
Read Ethereum’s [ETH] Price forecast 2024–2025
However, it has mostly struggled to maintain bullish momentum, especially after a deathcross formation about two weeks ago.
Source: TradingView
ETH is currently within a previously tested support level, but the increase in zero balance addresses indicates a lack of bullish confidence. Whether it will return at the same level remains to be seen.