177,000 addresses were created in 24 hours, and the number of Ethereum addresses reached a single-day peak

Original title: "Where is the intrinsic value of Ethereum reflected now?"

At the time of writing (December 14), Ethereum seems to be receiving a lot of attention from many aspects of the industry, and although the recent successful launch of the Ethereum 2.0 Beacon Chain is an important highlight, the price of ETH seems to continue to establish itself in a higher range.

Now, Ether, in terms of its price, is also showing that the aforementioned growth has occurred.

According to Santiment’s report, Ethereum addresses hit a record high in a single day as more than 177,000 addresses were created in the past 24 hours , which is a very positive indicator that has not been seen since January 2018.

However, given Ethereum’s price action, perhaps the growth in addresses is not a new development, so the question becomes whether the current “new” situation tells a bigger story?

Is network growth correlated enough with price?

To understand the above narrative, look again at the previous chart, network growth has been common in the past, but it has never kept prices higher. With Ethereum considered the “best” cryptocurrency after Bitcoin, the launch of Ethereum 2.0 could create a whole new identity for another leading cryptocurrency.

But is this really the case?

Activity around ETH 2.0 has really picked up pace in 2020, but there’s always been a veil of uncertainty surrounding it. Delays didn’t help, but the beacon chain was finally launched, and today, interest is skyrocketing. Currently, over 2% of all ETH in circulation is in the new network.

Ethereum’s intrinsic value may now lie elsewhere, and after ETH 2.0 is implemented, ETH can be called a defensive asset, and this is why it matters.

The value of a secure network

There is no doubt that Bitcoin will continue to be the most valuable crypto asset in terms of value. However, in Ethereum’s new model, ETH will be destroyed instead of being remitted to transaction validators, so the deflationary aspect may come into play in an unprecedented way.

Ethereum will help participants secure transactions and settlements in a more secure manner, which will have its own value, and as the world’s most defensive cryptocurrency, it will have its own privileges.

The value of defending important blockchain networks will remain apparent , and this may be the future market for Ethereum.

So we may be at a crossover point where Ethereum network growth and price action are becoming more relevant, and of course, users are now paying attention to all the technical terms, and it may not be just about making money anymore.

The original text comes from ambcrypto and was translated by Blockchain Knight. The English copyright belongs to the original author. Please contact the translator for Chinese reprint.