While Ether (ETH) price has been stuck between the $340-$350 range for the last month, multiple on-chain metrics suggest that a recovery may be building.
Santiment, a cryptocurrency data analytics firm, recently noted that the number of deposits to exchanges has been decreasing since the start of September. According to the firm, the number of addresses used to send Ether to exchanges has seen a 53% decline since Sept. 1.
Ether daily deposits in the last 6 months. Source: Santiment
Although sell pressure on Ether has been reducing on exchanges, the number of new users on the network has been steadily increasing.
Data from glassnode, a onchain analytics resource, shows the number of addresses holding at least 0.01 Ether reached a new all-time high at 10,116,076.
Ether addresses holding 0.01+ coins. Source: glassnode
This growth is largely driven by the DeFi sector and just this week Etheruem wallet, MetaMask confirmed that it surpassed 1 million monthly active users, a figure that has tripled since February.
Crypto whales have also been accumulating Ether at the current princes, suggesting that they believe the altcoin is underpriced.
While it is hard to affix a concrete value to crypto assets due to the high levels of market volatility, Ether has been a top performer in 2020 and the altcoin still significantly outpaces the gains seen from Bitcoin.
Bitcoin and Ether YTD performance. Source: Source…