As the cryptocurrency market began to emerge from its weeks-long slumber, smart contract activity on several blockchains, notably Ethereum, seemed to increase.
In fact, Easy OnChain, a crypto analyst at the research firm CryptoQuant, noticed on October 26 that although the number of newly installed smart contracts on the Ethereum chain declined during the weak market, activity has increased since October 9.
According to one observer, the decline in Ethereum smart contract activity during the bear market was “likely due to the fact that nobody wanted to launch a new dApp when the market was falling.”
Nevertheless, a substantial spike in the number of new smart contracts on the network, which began on October 9, may be indicative of developers’ increased confidence, or as the expert explained:
“This may suggest that developers’ expectations for the future of the market and network activities have increased.”
Easy OnChain says, “if these new contracts are produced for new applications, we will see several releases in the near future that might drive network activity.”
Notably, the most recent increase in Ethereum on-chain activity occurred around three weeks after the long-awaited Merge update, which marked the network’s formal shift to the proof-of-stake (PoS) algorithm.
In addition, Finbold reported in mid-October that, since the update, Ethereum has been adding around 86,945 unique addresses each day, reflecting the public’s rising interest in the network and its expanding use cases.
Ethereum is now trading at $1,496, a decline of 3.84% on the day, after over $20 billion was injected into the market capitalization of the decentralized finance (DeFi) asset earlier in the week, putting its price over $1,500 for the first time since the post-Merge meltdown.
In addition, the current price marks a gain of 16.45% over the last week, while the market capitalization of the second-largest cryptocurrency by this metric sits at $185.01 billion.
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