The Ethereum network is experiencing a remarkable surge in activity, with new wallet creation reaching its highest level in eight months just as the cryptocurrency approaches the $4,000 price mark.
Daily wallet creation has soared to 130,200 new addresses in December 2024, marking the strongest growth since April. This surge in network activity coincides with increasing institutional interest and growing adoption of the Ethereum blockchain.
The momentum is further amplified by substantial ETF inflows, with BlackRock's Ethereum ETF (ETHA) attracting $3 billion in investments. Grayscale's Ethereum ETF has also recorded its first positive daily inflow since July 2024, with weekly net inflows reaching $854.85 million.
Market analysts note that large transactions valued at $100,000 or more have reached $68.23 billion in the past week, representing one of the highest weekly transaction volumes this year. This increased activity suggests growing confidence among institutional investors and high-net-worth individuals.
The combination of rising wallet creation and institutional investment has created optimistic market sentiment. While Ethereum has traded between levels of $2,220 and $4,000 for much of the year, some market observers predict potential price targets of up to $15,000 in the coming months.
The current market dynamics represent a shift in investor preference, as Ethereum ETFs continue to attract substantial inflows while Bitcoin ETF interest shows signs of cooling. Total assets under management for Ethereum Spot ETFs now stand at $13.78 billion, reflecting growing investor confidence in the cryptocurrency's long-term potential.
As Ethereum tests the $4,000 resistance level, the surge in network activity and institutional adoption suggests the possibility of reaching new price milestones, with some analysts eyeing $5,000 as a realistic target for early 2025.