Number of smart contracts on the Ethereum network rises to 16-month high

CryptoQuant’s analyst believes that this may reflect developers’ renewed optimism

28.10.2022 - 12:00

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What’s new? Since October 9, the number of new smart contracts deployed on the Ethereum blockchain has risen to a 16-month high, an analyst at the research company CryptoQuant under the nickname Easy OnChain noted. Previously, such activity was observed only in July 2021. Among other reasons for the prolonged decrease in activity, the expert highlighted the reluctance of developers to launch new decentralized applications (dApps) during the market downturn. As of October 28, 10:40 UTC, ETH is trading at $1505, down by 2,75% in 24 hours, according to Binance.

CryptoQuant’s data

What else did the analyst report? Easy OnChain explained that the increase in the number of new smart contracts on Ethereum may reflect developers’ renewed optimism. In case new smart contracts are developed for new applications, many launches in the near future that could stimulate activity on the network should be expected, the expert summarized.

In September, development activity on the Polkadot network hit an all-time high, with the project recording daily more than 500 code additions on the GitHub repository. The Solana network surpassed Ethereum by 40 times in the number of transactions in Q2, the blockchain of the second most capitalized cryptocurrency processed only 1 million transactions per day.

It is also worth noting that the last spike in activity on the Ethereum network occurred just over three weeks after The Merge upgrade, which resulted in the blockchain changing its consensus algorithm. In addition, management of the network shifted from miners to validators, and the ETH cryptocurrency itself became deflationary.

For what to expect from the reduction in coin supply following the network’s transition to PoS, see GetBlock Magazine’s article.

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