ETH - Ethereum's Having a Heyday -- and This Trend Suggests There's Much More to Come
Even though prices for Ethereum (CRYPTO: ETH) are down significantly since it hit an all-time high of almost $4,900 in November 2021, the blockchain is showing a resurgence in activity for the first time in quite a while. One of the primary metrics to gauge activity is the rate at which new smart contracts are being created.
Ethereum was the first blockchain to offer smart contracts . They allow developers to program actions that are only triggered when a set of specific parameters are met, and remove the need for any intermediary. Smart contracts are the backbone of many decentralized applications running on Ethereum, and the rate at which they are created can provide valuable insight into how much the blockchain is being used. Typically blockchain use is a reflection of demand and subsequently price action. As a blockchain is in more demand, prices tend to follow suit.
It turns out that the number of smart contracts being created in the past few weeks could hint at some respite from Ethereum's 2022 lows. Based on recent figures from the Messari database , smart contract creation is at its highest levels since the bull run of 2021. After an 18-month lull and only one day with more than 25,000 contracts created, Ethereum experienced an uptick in activity this past October. To close out the last quarter of 2022, Ethereum posted eight days of more than 100,000 contracts created and consistently registered days of more than 50,000.
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Ethereum's Having a Heyday -- and This Trend Suggests There's Much More to Come