On-chain metrics firm Santiment says it is still investigating the cause of a sudden surge of ETH active addresses, which have eclipsed the previous ATH by a whopping 48%

On July 27, the analytics firm tweeted that the number of daily active addresses on Ethereum had suddenly spiked to 1.06 million, shattering the previous high of 718,000 set back in 2018.

An active address is one that has made a transaction in the past 24 hours. The number of active addresses can indicate the level of on-chain activity from developers and projects inputting updates to their work or platforms, and traders performing simple token transfers.

However, Santiment says its team is still investigating the cause of the spike. Cointelegraph also reached out to Ethereum core developer Tim Beiko to explain the unusual activity but did not get an immediate response.

#Ethereum shattered records Tuesday after an incredible surge in address activity broke its #AllTimeHigh by a wide margin. 1.06M $ETH addresses made transactions, & the team is still investigating the cause of the +48% increase over the previous record. https://t.co/fRLNXkx0PR pic.twitter.com/oXhGvCTJef

Head of strategy at Coinbase Conor Grogan posted in a Twitter thread that the increase in activity comes from a high number of token transfers per unit of gas rather than from greater adoption.

He explained that the spike in active addresses is due to an increase "mundane" send/receive activity, such as "Binance doing a maintenance sweep," as opposed to more “productive” activity from decentralized finance (DeFi) and nonfungible token (NFT).

Ethereum reached an all time high in "daily active addresses" today.Counter-intuitively, I don't think this means that Ethereum has greater adoption than