New data shows that in 2021, the Ethereum network reached 18.36 million addresses with a balance greater than zero. This translates into an astonishing growth rate of 1.53M new addresses per month, but competition for market share is getting fiercer.
Analyst firm IntoTheBlock shared its findings on Ethereum in a February 15 tweet.
Briefly about the growth of #Ethereum users. A good way to track adoption is to keep track of the number of addresses with a balance. There are 70.4 million addresses holding $ETH. In 2021 alone, it increased by 18.36 million. This means that the network grew at a rate of 1.53 million addresses per month. pic.twitter.com/xnhDw3wHVm — IntoTheBlock (@intotheblock) February 15, 2022
Even though Ether (ETH) hit two new all-time highs in price in 2021, the pace of new address growth has not been particularly correlated with price spikes. Since October, the network has gained about 10 million addresses.
While the overall numbers are rising, the proportion of active addresses on the network is declining. Overall, active addresses accounted for 1.05% of all addresses as of January 1, 2021, peaking at 1.66% on April 25, but have since dropped to 0.86% as of February 15.
The number of whales holding more than 1,000 ETH has also been declining since early 2021. Analyst firm Glassnode reported on February 13 that whale wallets hit a 4-year low of 6226.
According to statistics aggregator Ethereum Ycharts, the average daily transaction volume has stabilized at 1.2 million since mid-December. Factors can be high gas fees and alternatives in the form of cheaper and often faster sidechains and layer 2 solutions on Ethereum. It was noted 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 the daily volume of Ethereum transactions. Polygon currently handles about 3 million transactions per day.
Related: Polygon and Cere Network to Launch Web3 Media Platform, DaVinci
Ethereum continues to be the leading total value locked (TVL) smart contract platform in the ecosystem. Network statistics platform Defi Llama indicates that Ethereum currently has $124.24 billion in TVL, which greatly surpasses Terra (LUNA) with $15.04 billion.