Ethereum addresses have been steadily increasing since last year, but daily transaction volumes and the number of whales on the network are declining.
New data shows that in 2021, the Ethereum network reached 1,836,000 addresses with a balance greater than zero. This results in an impressive growth rate of 1.53 million new addresses per month, but the competition for market share is becoming increasingly fierce.
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Intelligence firm IntoTheBlock shared its findings on Ethereum in a tweet dated February 15.
Although Ether (ETH) hit two new all-time highs in price in 2021, the growth rate of new addresses did not correlate particularly well with price spikes. Since October, the network has collected about 10 million addresses.
While the total numbers are increasing, the share of active addresses in the network is decreasing. In total, active addresses accounted for 1.05% of all addresses on January 1, 2021, peaking at 1.66% on April 25, but have since fallen to 0.86% as of February 15.
The number of whales holding more than 1000 ETH is also decreasing from the beginning of 2021. Analytics firm Glassnode reported on February 13 that whale wallets hit a 4-year low of 6,226.
According to Ethereum statistics aggregator Ycharts, the average daily transaction volume has stabilized at 1.2 million since mid-December. Factors could be high gas fees and alternatives in the form of cheaper and often faster sidechains and layer 2 solutions on Ethereum. It was mentioned in Cointelegraph Magazine along with Samep Singhania why he decided to build Quickswap on Polygon.
After a huge spike in usage last May, the Polygon (MATIC) sidechain has averaged more than double Ethereum’s daily transaction volume. Polygon currently handles about 3 million transactions per day.
Ethereum continues to be the leading smart contract platform by total value locked (TVL) in the ecosystem. Online statistics platform Defi Llama indicates that Ethereum currently has $124.24 billion in TVL, well ahead of runner-up Terra (LUNA) at $15.04 billion.