Here’s How ETH Price Reacted to Biggest Network Activity Surge of Year

According to crypto analytics agency Santiment, the Ethereum network saw its biggest growth spike in 2022 this past weekend. Within a couple of days, the number of new addresses appearing on the network reached 135,780, which is 11.1% more than the Jan. 3 surge. The current growth of the Ethereum network is the highest since Dec. 7, 2021, Santiment concludes.

📈 #Ethereum saw a surge of new addresses created Saturday, with 135,780 new $ETH addresses popping up on the network. This is 11.1% more network growth than the next highest of 2022 (Jan 3rd). Utility rises commonly foreshadow potential asset breakouts. https://t.co/tIRv6sJxJc pic.twitter.com/boA6v5jk8W

— Santiment (@santimentfeed) October 9, 2022

What is surprising is not the extremely high network growth numbers that have drawn a skyscraper on the on-chain chart, but the reaction of the ETH price. According to the results of these days, ETH quotes not only did not rise but in general collapsed by 3%. If we compare the current surge with the aforementioned result of Dec. 7, there the growth of the network was accompanied by a 13% increase in the price of ETH.

Nevertheless, there are suspicions that the real reason for the Ethereum network’s growth was provoked not by how remarkable ETH itself was but by another cryptocurrency.

What’s XEN and what does it have to do with ETH?

XEN is a token created in the Ethereum network (ERC-20), the feature of which is unlimited supply, no listing on exchanges and no premint. Literally speaking, anyone could mint XEN, but due to the fact that the token is on the ERC-20 network, commissions were paid in ETH.

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So, as a result of minting XEN, enthusiasts burned 2,636 ETH in commissions, which equals $3.5 million and gives a full measure of the size of the event and explains the surge in the Ethereum network’s growth over the weekend.