Ethereum hits 1.29M active addresses, but security risks loom – Why?

ambcryptoPublished on 2026-01-24Last updated on 2026-01-24

Abstract

Ethereum recently reached a record 1.297 million daily active addresses, largely driven by a surge in stablecoin transactions. However, a significant portion of this activity is attributed to malicious "address poisoning" attacks, where scammers send small amounts of tokens ("dust") to wallets from spoofed addresses. This tactic has already resulted in $740k stolen from 116 addresses. Despite these security risks, the network's fundamentals remain strong following the successful Fusaka upgrade, which drastically reduced transaction fees. Institutional demand and accumulation are high, with Ethereum dominating the real-world asset (RWA) sector and on-chain metrics showing strong market absorption.

Activity on the Ethereum [ETH] network has never been higher. In a post on X, Token Terminal revealed that the daily active addresses surpassed those of the Layer 2 solutions.

On the 16th of January, the number of Active Addresses was 1.297 million, according to Etherscan data.

At the time of writing, this figure has dropped to 945k. Yet, the trend was unmistakable. The Fusaka upgrade was completed in early December, which cut network transfer fees by nearly 6x.

This has likely had other consequences, as blockchain security specialist Andrey Sergeenkov wrote.

Dusting and poisoning on Ethereum

The specialist found that the massive increase in the number of active addresses and on-chain transactions was due to stablecoin transactions. 67% of the new addresses received less than 1 dollar as their first stablecoin transaction.

Sergeenkov identified this as “dust” and also found smart contracts that automate the mass distribution of poisoning dust.

This is address poisoning. Attackers send small amounts of tokens, or dust, to wallets using addresses that closely match their own. Later, when these users copy an address from their transaction history without closely checking it, they end up sending funds to the attacker.

Even with a low conversion rate of 0.01%, $740k has been stolen from 116 addresses in this way. It should be said that $509k came from a single victim.

Assessing the fundamentals

The Fusaka upgrade was a success. Cheap transactions should be the goal for any network. This would be a key step toward “institutionalization“. AMBCrypto pointed out that Ethereum was the leader in the real-world asset (RWA) sector, controlling roughly 60% of the market.

Aggressive ETH accumulation from entities such as Bitmine was a positive sign. In Q4 2025, Ethereum treasuries acquired 1.2 million ETH. On-chain metrics also highlight buyer dominance in the spot markets, reflecting absorption instead of distribution.

The kind of divergence between price and fundamentals right now, argued Bitwise CIO Matt Hougan, is what marks the bottom of bear markets.

Final Thoughts

  • The record-high daily active addresses were not as hopeful a sign as it appears on first glance.
  • Despite the threat from address poisoning, fundamentals, including on-chain metrics and institutional demand, remained strong.

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Related Questions

QWhat was the peak number of daily active addresses on the Ethereum network in January, and what was the figure at the time of writing?

AThe peak number of daily active addresses was 1.297 million on the 16th of January. At the time of writing, this figure had dropped to 945k.

QAccording to the article, what was the primary reason for the massive increase in active addresses and on-chain transactions?

AThe massive increase was primarily due to stablecoin transactions, with 67% of new addresses receiving less than 1 dollar as their first stablecoin transaction.

QWhat is 'address poisoning' as described in the article, and how does the attack work?

AAddress poisoning is an attack where attackers send small amounts of tokens, or 'dust', to wallets using addresses that closely resemble the victim's. The victim may later mistakenly copy this fake address from their transaction history and send funds to the attacker.

QWhat positive impact did the Fusaka upgrade have on the Ethereum network?

AThe Fusaka upgrade, completed in early December, successfully cut network transfer fees by nearly six times.

QDespite the security risks, what positive fundamental factors for Ethereum does the article highlight?

AThe article highlights strong fundamentals including Ethereum's dominance in the real-world asset (RWA) sector, aggressive ETH accumulation by entities like Bitmine, on-chain metrics showing buyer dominance, and institutional demand.

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