Ethereum adds over 38 million new addresses in 2021, 22% of all ever created
14 Sep, 2021 CryptoParrot
The Ethereum network plays a key role in the cryptocurrency circles, with the asset recording significant interest. The interest is highlighted by the number of people who intend to get involved in the network through the creation of new addresses.
Data acquired by cryptocurrency trading simulator Crypto Parrot indicates that an average of 149,843 new unique Ethereum addresses have been created daily in 2021 on a year-to-date basis. So far, in September, a total of 1,389,999 new unique addresses have been created.
Elsewhere, by September 2021, 38,256,193 new Ethereum addresses were created in 2021, accounting for 22.59% of all ETH addresses ever created to date. In general, the cumulative number of Ethereum addresses to be created since inception stands at 169,296,775.
Drivers for Ethereum new unique address creation
The significant number of new unique Ethereum addresses highlights the interest recorded in the network as its value surged in 2021. On a year-to-date basis, the value of Ethereum has spiked by over 800%, with the network attracting increased use cases in DeFi and NFT sectors.
With the number of new addresses increasing alongside the increased value of Ethereum, it can be assumed that the addresses are by retail investors who intend to get involved in the network. Most investors are known to amass digital currencies, especially with the bull run experienced from the start of the year.
Notably, the Ethereum addresses have recently emerged as a measure of the position the digital asset holds in the crypto sector. At some point, Ethereum’s popularity culminated in the total daily active addresses surpassing Bitcoin, highlighting the demand in the second-ranked crypto.
Notably, leading institutions like the United States banking giant Goldman Sachs has touted Ethereum to become the next big force in the crypto market, surpassing Bitcoin as the main store of value cryptocurrency.
Consequently, there is a possibility investors are creating new addresses to own the asset in anticipation of a new price surge. Ether is in this position mainly due to its use cases, like being the most popular smart contract development platform.
The addresses peaked in May at the height of the cryptocurrency market bull run. However, the number of new addresses took a dive correlating with the correction of the entire cryptocurrency market.
Impact of the Ethereum network upgrade
Besides the general crypto market correction, the Ethereum number of unique addresses was potentially impacted by the implementation of the deflationary system after the London upgrade.
The drop in new addresses comes at a point the Ethereum network upgrade is expected to create a deflation over time as it modifies the auction process. Furthermore, with Ethereum transitioning to the proof-of-stake protocol, the network will likely experience an influx of new users who want to cash in on the staking.
Ethereum network aims to do away with mining and transition to the energy-efficient PoS. This process is also much cheaper and will allow the issuance of new coins to be significantly reduced while still subsidizing network maintenance.
Notably, several cryptocurrency firms have unveiled platforms allowing the staking of Ethereum 2.0.
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