Fresh data from crypto analytics data provider IntoTheBlock suggests that the number of users on the Ethereum network has continued to surge on a monthly basis.
According to the data, in 2021, the number of addresses holding the second-largest cryptocurrency by market capitalization grew at a pace of 1.53 million addresses monthly.
Following the significant increase, a total of 18.6 million addresses that are holding the cryptocurrency were added to the Ethereum network in 2021 alone.
With the most recent data, there are now 70.4 million addresses to date that are holding Ethereum.
“Ethereum users growth in a nutshell. A good way to track the adoption is by following the number of addresses with a balance. There are 70.4m addresses holding $ETH. Just in 2021, it increased by 18.36m. That means the network was growing at a pace of 1.53m addresses per month.”
#Ethereum users growth in a nutshell
A good way to track the adoption is by following the number of addresses with a balance
– There are 70.4m addresses holding $ETH
– Just in 2021, it increased 18.36m. That means the network was growing at a pace of 1.53m addresses per month? pic.twitter.com/xnhDw3wHVm— IntoTheBlock (@intotheblock) February 15, 2022
Ethereum Surges Amid DeFi and NFT Adoption
Although the increase in the number of addresses holding Ethereum does not signify the exact number of holders for the token, the data shows that the Ethereum network is growing at an unprecedented rate.
The growth in the number of ETH addresses holding the cryptocurrency signals the growing adoption of decentralized finance (DeFi) and non-fungible tokens (NFTs) that have continued to lure several users.
While DeFi’s adoption peaked by early 2021, interest in NFTs has continued to record significant growth, with users looking for the perfect opportunity to enter into new projects.
Interestingly, the vast majority of DeFi and NFT projects are currently on the Ethereum network. Based on this, users will only be allowed to venture into these protocols using Ethereum native cryptocurrency.
According to data on Dune Analytics, over $7 billion have been traded on Ethereum-based NFT marketplace OpenSea since the beginning of the year.
Similarly, the total value locked (TVL) across various decentralized finance protocols have reached approximately $80 billion, with Ethereum-related projects ranked in the top 20 spots.
Meanwhile, the growth in the number of addresses can also be attributed to the falling price of the second-largest cryptocurrency.
Price Crash Prompts Adoption
Recall that Ethereum also had a fair share of the price dip last month, when its value plummeted below 2,300 on January 24, 2022.
The ETH price crash prompted one of the largest accumulation sprees the network has ever experienced.
Meanwhile, the number of addresses holding at least 1 ETH surged to a new all-time high (ATH) this year following a price dip.
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