According to data released by IntoTheBlock, the number of addresses holding between 0.1 and 1 ETH has reached a new all-time high. One of several adoption signs that could point to Ethereum being a commonly utilized asset is the growing number of relatively small wallets.
According to the data, the number of small Ethereum addresses has increased by 98 percent since the start of 2021, resulting in 1.78 million ETH being stored by small wallets.
The explanation for the increase in the amount of coins held by small wallets is most likely related to both Ethereum’s intrinsic growth and its price rally. ETH was one of the best-performing cryptocurrencies in 2021, reaching about 400% at its high in November.
Ethereum has established itself as a fantastic utility coin with several use cases in various blockchain-related domains. Such as DeFi, NFTs, staking, and others, in addition to becoming a compelling investment possibility for retail traders.
According to WatchTheBurn data, Ethereum has burned over 1.8 million tokens worth $5.6 billion. So, This is due to extensive use of the network by various on-chain applications. Also, Ethereum makes the most money among all blockchains in the industry, despite its high burn rate.
While the number of small Ethereum wallets is steadily expanding, activity among the same set of wallets remains low. Of course, which is most likely due to another period of excessive gas consumption. That’s, when users were forced to pay up to $50 in ETH each transaction on the network.
At the time of writing, Ethereum was trading at $3,086. Which is, down 36% from its all-time high and up 42% from its all-time low in 2022.
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