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A similar trend can be noted in the daily active addresses count on the Ethereum network.

📈 #Ethereum $ETH Number of Non-Zero Addresses just reached an ATH of 73,104,412 View metric: https://t.co/beS1MtIgAZ pic.twitter.com/ePQapmc1dq — glassnode alerts (@glassnodealerts) January 18, 2022 Another factor that turned the tides in Ethereum’s favor last year was the implementation of a fee-burning mechanism through EIP-1559.

This month the $ETH inflation rate dropped below the $BTC inflation rate Once The Merge is here in July, ETH issuance will drop 90% and turn fully deflationary This will be the single most bullish event in the history of #Ethereum This is why ETH is truly Ultra Sound Money pic.twitter.com/XgFgvuaXRl — Crypto-Gucci.eth gm🦇🔊 (@CryptoGucci) January 17, 2022 The renewed, or sustained, NFT mania has also been pushing Ethereum’s viability to greater levels, Outumuro argued in the report.

While Ethereum-based NFT marketplace OpenSea has repeatedly been carrying out trade worth millions each week, the emergence of new platforms such as LooksRare, which has already taken the market by storm, is only adding to the fervor.

#LooksRare #opensea pic.twitter.com/AIFIZyIFNP — Rotem Yakir 🍊 🌐 (@yakirrotem) January 16, 2022 In fact, JP Morgan remarked in a recent report , “With NFTs being the fastest-growing universe in the crypto ecosystem, the share of Ethereum in the NFT space might prove more important than its share in DeFi space in terms of driving its future valuation.” Regardless of the bullishness, Ethereum’s sustained congestion issues have been cutting into its success.

Outumuro noted in his report that the slight decrease in the network’s transaction count over the past year can be attributed to the emergence of Layer 2 scaling solutions.

📈 pic.twitter.com/Yq15zhoVRQ — That Martini Guy ₿ (@MartiniGuyYT) January 15, 2022 However, the trend could also point to Ethereum’s waning dominance as rival blockchains come up as alternatives.

Cardano ‘s daily transaction count has already been moving neck-to-neck with Ethereum’s, even surpassing it briefly this week.