Number of active Ethereum users increased 36% in Q3 despite bear market
Ethereum saw a significant increase in the number of unique users on its network in Q3.
Ethereum added over 4.5 million new active users in the third quarter, according to data from Dune Analytics. This growth breaks the steady decline in users the network has faced since the fourth quarter of 2021, when the price of ETH climbed to an all-time high of $4,890.
The 4.5 million new users represent a 36% increase in the active user base, indicating that the ongoing bear market has done little to curb interest in Ethereum.
Alan Goldberg, Analyst best brokersthe long-anticipated merge has certainly boosted interest in the Ethereum network, but it is not the only factor that has caused such a significant uptick. Therefore, the network was not the only reason for the upward trend in active users.
“Considering other factors, such as the fact that people are actually finding cryptocurrencies as an investment option, and the record lows in the third quarter of 2022 seemed like a bargain to retail investors. I have to put it in.”
At the end of Q2, the price of Ethereum fell below $900, sparking a market frenzy. But Goldberg believes the low price must have seemed like a bargain to many optimistic investors who jumped at the opportunity to enter the market. His cheap ETH may have also opened the door for retail investors who were discounted from the network due to high gas prices.
Since then, ETH’s price has bounced back after breaking the $1,000 resistance, rising more than 100%, reaching nearly $2,000 in August. The price of ETH (currently around $1,300) remains a great opportunity for investors.
BestBrokers researchers point out that price volatility and high trading volume are the two main factors driving interest in the cryptocurrency market. This is exactly what Ethereum offered last quarter, showing the potential to attract millions of new investors and attract more.
“The 36% increase in active users in just three months could be interpreted as an indication that the cryptocurrency market is again trending positively. The fact that we have more than 14% more active users than our peak in Q4 of 2021 only reinforces crypto analysts’ expectations that the market has great potential to rise again.”
