Over the past month, there have been more daily active addresses on the NEAR protocol than on Ethereum and its layer 2 protocols, including Arbitrum and OP Mainnet, Artemis data from September 25 reveals.
Artemis, an institutional data platform for digital assets, shows that the number of daily active addresses on the NEAR Protocol has consistently exceeded 400,000 in September.
Daily active addresses at NEAR protocol increasing
A closer look at the data confirms that the number of daily active addresses on Ethereum, the pioneering smart contract platform that hosts most decentralized finance (DeFi) and non-fungible token (NFT) activity, has declined.
To illustrate, the number of daily active Ethereum users rose above 1 million in mid-September, but has since more than halved to under 400,000. The same trend can be seen in Arbitrum, which dropped from around 200,000 at the end of June to 150,000 when written on September 25.
During this time, NEAR Protocol’s daily active addresses have rapidly increased from around 40,000 at the end of June to over 400,000, outperforming Ethereum in this area. With the number of daily active addresses increasing, there has been a spike in the number of daily transactions over the past month. According to trackers, the NEAR Protocol processes more transactions than Ethereum.
Public ledgers like NEAR Protocol and Ethereum rely on a community of users who actively transact – move value or run protocols – or validators – to secure the network. However, the number of daily active addresses can provide valuable insights into adoption levels, user engagement, and overall network health.
In addition to user engagement, rising daily active addresses could also indicate changing market sentiment, which could have a significant impact on prices.
Is in control as DEX trading volume remains relatively stable
Currently, NEAR, the native token of the NEAR Protocol, is trading near its 2023 lows. The coin is changing hands at $1,107, down 61% from its 2023 highs and remains under pressure.
The arrangement of the candlesticks on the daily chart indicates consolidation and stability above the primary resistance level at $1. Bears have the upper hand if prices remain below $1.23, a critical resistance level marking the August 17 highs.
As evidence shows, network activity and price action diverge. While the number of transactions has also increased, the number of unique addresses communicating with the NEAR Protocol’s decentralized exchanges has remained largely stable. Looking at the numbers, the DEX volume on the platform is significantly lower than the volume recorded in Ethereum and its popular layer 2 platforms.
Feature image from Canva, chart from TradingView