The largest altcoin Ether (ETH) topped $ 400 for the first time since mid-2018 this week.
Researchers from the Glassnode team believe that the coin is updating highs due to the increased activity of users of the Ethereum network.
The number of addresses making daily transactions now exceeds 482,000 - the maximum in a year.
Since January 2020, there has been a strong correlation between the growing number of active Ethereum addresses and the price of cryptocurrency, analysts emphasize.
The correlation index between the two is 60.9%. Last year it exceeded 76%. It was found that if the number of active addresses on Ethereum increases by 1% per day, then during the same time the altcoin rises in price by about 0.18%.
Ether is trading just below $ 400 today, with ETH bouncing back as a result of a slight correction following its recent surge. However, many analysts are confident that the potential for a resumption of the rally has not yet been exhausted.
Earlier this week, BitMEX CEO Arthur Hayes tweeted that the largest altcoin is set to break an annual record to surpass $ 500 in the near term.