New data shows that Ethereum gained 18.36million addresses and had a balance greater then zero in 2021. This is an incredible growth rate of 1.53million addresses per month. However, the market is becoming more competitive for market share.
Blockchain intelligence company IntoTheBlock shared its findings on Ethereum in a February 15 tweet.
In a nutshell, #Ethereum users growth That means the network was growing at a pace of 1.53m addresses per month pic.twitter.com/xnhDw3wHVm
— IntoTheBlock (@intotheblock), February 15, 2022
Despite Ether (ETH’s) price reaching new all-time highs of $1,2 billion in 2021 and rising to $1.3 trillion in 2019, the growth rate for new addresses did not correlate with price increases. Since October, the network has added approximately 10 million addresses.
Overall, the numbers are increasing, but there has been a decline in active addresses. The active addresses accounted for 1.05% overall of all addresses as of Jan. 1, 2021. They peaked at 1.66% April 25, but have since fallen to 0.86% February 15.
Since the beginning of 2021, the number of whales that have more than 1,000 Ethereum has been decreasing. Glassnode, an on-chain analytics company, reported that whale wallets have fallen to a low of 6,226 over the past four years.
According to Ycharts, the average daily transaction volume has stagnated at around 1.2million since December’s middle. There may be reasons for high gas fees, as well as alternatives such cheaper, faster sidechains or Layer-2 solutions on Ethereum. This is why Sameep Singhania built Quickswap on Polygon, as it was highlighted in Cointelegraph Magazine.
After a dramatic spike in usage last may, the Polygon sidechain (MATIC), has seen more than twice the daily transactions volume of Ethereum. Polygon currently receives approximately 3 million transactions daily.
Related: Polygon, Cere network launch Web3 media platform, DaVinci
SpookySwap also recognized the benefits to their users by building on a sidechain instead of the Ethereum mainnet. SpookySwap, a decentralized exchange (DEX), is built on Fantom Opera’s L2 solution. Today, the team shared with Cointelegraph that “Fantom offers a great opportunity to defi users with quicker transactions and significantly lower gasoline fees.”
Ethereum is the top smart contract platform in terms of total value locked (TVL). Defi Llama, an on-chain statistics platform, indicates that Ethereum has $124.24 trillion in TVL at the moment. This is far more than Terra (LUNA), which has $15.04 billion.