Santiment, a crypto analyst, has recorded a huge spike in Ethereum address creation. According to them, there has been a huge increase in address creation recently which has led it to hit a 35-month high. On December 12, 2020, it was recorded that Ethereum has added 177,500 addresses in a single day.
There was a huge surge in the number of active Ethereum addresses on December 14, 2020, which was at 714,081.
📈 The amount of new #Ethereum addresses hit a single-day, 35-month high Saturday. Our network growth metric picked up $ETH reaching 177.5k addresses created. Notably more addresses interacting on an asset's network is a very promising indicator for bulls. https://t.co/Y6Uvhzyemq pic.twitter.com/yIv2SOYhDS
— Santiment (@santimentfeed) December 14, 2020
DeFi Liquidity Mining Surge Resulted Uptick in Ethereum Address Creation
The exact reason behind this huge surge in Ethereum address creation is not clear yet but it might be due to a surge in DeFi liquidity mining. People were having good returns here while having ETH as collateral. Another possible reason behind this surge might be the newly launched ETH 2.0 Beacon Chain as a lot of investors have been buying ETH to stake on this blockchain.
Along with these factors, the Bitcoin price surge might also have contributed to it. The reason is that Bitcoin’s price surge is leading to a surge in other cryptocurrencies as well.
Flare Network’s Airdrop Might Have Led To Spike
Some believe that the token airdrop by the Flare Network which is especially for XRP holders has contributed to a great extent in Ethereum address creation. According to Flare, they will be distributing around 45 billion Spark tokens and 15% among them will be claimable at the launch. The remaining ones will be distributed over the next two years. It has been seen that some of the major crypto exchanges like Coinbase and Binance are supporting this airdrop by the network. All those XRP holders who are holding them out of the centralized exchanges are required to create a Flare address. As claimed by the firm, Flare addresses are highly compatible with Ethereum ones.