Data source: CryptoQuant

Number of Ethereum New Contracts

Smart contracts are the cornerstone of Ethernet applications. They are computer programs stored on the blockchain that allow us to convert traditional contracts into their digital counterparts. Smart contracts follow the IFTTT logical structure, which means they run exactly as programmed and cannot be changed, i.e. they are tamper-proof.

In addition to processing data, smart contracts also have built-in transfer functions, so users can trade cryptocurrencies through smart contracts. Ethernet has also developed web3.js, which allows developers to use web technology to develop the interface of smart contracts, hence the name Dapps (Decentralized Applications).

Currently, Dapps can only be used in browsers that support Dapps, or on desktop browsers by installing the Metamask browser plug-in.

How to analyze it?

With the number of newly developed smart contracts on Ether having declined since the start of the bear market, developers may believe that the launch of new Dapps projects and smart contracts will be more useful during a bull market and less likely to gain traction during a bear market. Because of these assumptions, the latest spike in ethereum smart contracts reflects developers' increased optimism.

Going back to 2020-2021, we can see a surge in the number of new smart contracts on Ether, and a lot of them, which of course leads back to the Defi boom in late 2020, plus all the Play-to-earn games.

Zooming in on the recent timeframe, we can see that the data has been increasing since the beginning of October, why? As I mentioned earlier, it could be because developers and project owners are optimistic about the future of the cryptocurrency community and the cryptocurrency market, so they are still adding new features to their projects even in this market, just take a look at Aptos, which is a recent craze! Of course, no one knows what the project owners are thinking, but insisting on launching a project in a bear market where profits are relatively low is definitely not something that people who are generally scamming would do, so the only thing left to speculate is that people really want to contribute to the cryptocurrency community, and build up their fundamentals as early as possible during the bear market to prepare for the next bull market, instead of launching gimmicky stuff only when everyone is making money in the bull market.