Activity on prominent altcoin networks such as Solana and Ethereum has surged significantly in January, achieving notable milestones. The second half of the month saw daily active addresses on the Solana network reliably exceeding 5 million. This increase comes as Ethereum, following a series of substantial upgrades intended to bolster its network, surpassed major layer 2 solutions in terms of daily active addresses in December. The Ethereum network witnessed a remarkable 25% increase in daily active addresses throughout January, reflecting ongoing development efforts aimed at “future proofing” the blockchain.
The Solana network experienced an impressive 115% increase in active daily addresses by January 28, as data from Nansen indicated. The spike correlated with a surge in memecoin launches, particularly following the introduction of Anthropic’s Claude Cowork—an AI agent designed to manage desktop functions. This excitement led developers utilizing Solana’s token launchpad, Bags, to launch tokens at an unprecedented rate, allowing transaction fees on the platform to reach $4.5 million by January 16. This was a stark contrast to the more lackluster conditions from September to December of the previous year, when daily fees rarely exceeded five figures and sometimes fell to a few hundred dollars.
In tandem with the activity on Solana, the Ethereum network also saw substantial growth. After overtaking leading layer 2 networks Base and Arbitrum at the end of December, it sustained a 25% increase in daily active addresses in January as well. Important upgrades to Ethereum have increased blob sizes and significantly reduced transaction fees, which as of January 29, averaged less than $0.01. These developments are part of an ongoing initiative to solidify Ethereum’s capabilities. On January 12, co-founder Vitalik Buterin emphasized the importance of the network passing a “walkaway test,” asserting that Ethereum should function efficiently without constant oversight from its developers.
Meanwhile, severe winter storms in the United States are causing operational challenges for seven Bitcoin mining firms. Located in regions experiencing power grid stress, firms such as Riot, Core Scientific, CleanSpark, and Bitdeer may have to reduce their mining activities due to power outages affecting thousands. Data from digital assets research head Matthew Sigel revealed that these mining operations are designed to adapt to utility demands through flexible load strategies. As the storm wreaked havoc with travel and power supplies—leaving around 400,000 people powerless across several southern states—mining facilities have been strategically positioned to stabilize grid prices by purchasing power when demand is low and temporarily shutting down during peak stress.
In a positive turn for cryptocurrency adoption, a report from payment processor PayPal revealed that four out of ten merchants in the U.S. now accept crypto payments. This growing acceptance is attributed to the rapid transaction speeds, enhanced privacy, and appeal to tech-savvy consumers that cryptocurrencies offer. PayPal’s vice president, May Zabaneh, noted that these findings reflect a shift in the perception of crypto from a mere novelty to a practical payment method in everyday commerce. Furthermore, 84% of surveyed merchants believe that crypto payments will achieve mainstream status within the next five years.
On the market front, Bitcoin’s price experienced volatility, temporarily climbing towards $100,000 before dipping back to around $87,000, reflecting a nearly 10% decrease from its monthly high. This downward trend coincided with geopolitical uncertainties, particularly pertaining to U.S. President Donald Trump’s commentary on Greenland. His stated intentions regarding this territory, crucial for geopolitical positioning, heightened market nerves and demonstrated Bitcoin’s sensitivity to global economic sentiments. Notably, analysts indicated that Bitcoin’s inability to serve as a safe haven amid rising geopolitical risks further solidified its perception as a risk-on asset. IG’s chief market analyst, Chris Beauchamp, pointed out that Bitcoin and other cryptocurrencies could not escape the broader market sell-off prompted by Trump’s contentious remarks.
