Ethereum's (ETH) network activity is showing signs of recovery after months of decline, with new wallet creation surging to levels not seen since July.
The world's second-largest blockchain by market cap is now averaging 163,000 new addresses daily in December, up from 124,000 in July, according to analytics platform Santiment.
The spike comes as ETH trades around $3,950, still below the psychological $4,000 level and well off its all-time high near $5,000.
What Happened
Network activity on Ethereum hit yearly lows in recent weeks, with active sending addresses falling to approximately 170,000 - a metric historically associated with reduced retail participation.
But the trend reversed sharply in early December.
On December 2, new wallet creation jumped to over 197,000 addresses.
By December 15, the figure stood at more than 195,000.
These levels exceed the July peaks that preceded ETH's previous rally toward $5,000.
The data suggests potential seller exhaustion and renewed demand, patterns typically observed before price reversals.
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Why It Matters
New wallet creation serves as a proxy for network adoption and retail interest in crypto markets.
The December surge could signal fresh capital entering Ethereum's ecosystem after months of stagnation.
However, price action remains tepid.
ETH briefly dropped below $3,900 earlier this week before recovering to current levels.
Some analysts remain bullish despite the sluggish price performance.
Trader Merlijn The Trader drew comparisons to Ethereum's 2015-2018 accumulation phase, projecting a potential rally in ETH's ratio against Bitcoin from current levels around 0.03 to 0.12.
Another analyst, known as CW, predicted a move toward $3,700 following what they described as a "trend reversal."
Whether wallet growth translates to sustained price momentum remains uncertain.
Network activity alone doesn't guarantee bullish outcomes, especially in volatile crypto markets where sentiment can shift rapidly.
For now, Ethereum's on-chain metrics tell a story of renewed interest - even if the market hasn't fully priced it in yet.
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