The increase in the number of wallets and addresses with ETH funds reveals a growing interest from users in operating on the Ethereum network due to the rise of NFTs and DeFi protocols.
A report revealed by the Blockchain research firm Glassnode highlighted that the number of addresses on the Ethereum network that have funds reached a new all-time high.
The Number of Addresses with ETH hits a New High
The information got released by Glassnode and showed at least 71,364,788 addresses on Ethereum whose balance is not at zero. This figure is almost 20 million more than the amount registered at the end of 2020.
Going deeper in this regard, Glassnode revealed that for the past December 30, the established record was 51,491,730 addresses with ETH funds, so compared to last year, there was an increase of 38% in this indicator.
Good Expectations for Ethereum
These data further highlight the growing interest in operating on the Ethereum network, which needs interested parties to manage ETH funds to use different products, protocols, and services.
Two of the sectors that have experienced a boom throughout this year on Ethereum have been precisely the NFT and DeFi, which move such large amounts of capital that can even rival other more traditional sectors.
However, the large user base and the notable increase in the volume of transactions make it necessary to find solutions to the problems regarding the high costs of operations and the frequent congestion peaks in the network. Therefore, second-layer solutions that intend to alleviate Ethereum have gained a lot of relevance.
On the other hand, the Ethereum team continues to work to bring the expected update to its network as soon as possible, which would present operational changes to improve the scalability and operation of its Blockchain. This situation could occur between 2022 and 2023, as long as there are no other issues during the development and testing period.
The team described the breakout of the multi-year range in the ETH-BTC pair as a popular trend this year. They expressed that Ether stood out so far this year, with a rise of about 500% compared to the rise of Bitcoin. This performance gap is the widest seen since 2015 when Ethereum got launched.
However, according to the report, the star of 2021 was Binance Coin (BNB). The native token of the Binance exchange outperformed the three largest cryptocurrencies due to its market capitalization in terms of profit. It got positioned as the winner with a considerable increase of about 1,344%.
This increase coincided with the growth of Binance Smart Chain’s (BSC) decentralized finance (Defi) ecosystem that captured some of the Ethereum markets this year, Arcane Research added.
By: Jenson Nuñez
