In 2021, the network added 18.36 million Ethereum addresses

Since last year, the number of Ethereum addresses has gradually expanded, yet daily transaction volumes and the number of whales on-chain have decreased.

In 2021, the Ethereum network added 18.36 million addresses with a balance higher than zero, according to new statistics. This equates to an incredible monthly growth rate of 1.53 million new addresses, yet competition for market share is growing more tough.

In a Sunday tweet, blockchain intelligence startup IntoTheBlock revealed its findings on Ethereum.

Despite the fact that Ether (ETH) reached two new all-time highs in price in 2021, the pace of expansion of new addresses was not especially connected with price surges. Since October, the network has added around 10 million addresses.

While aggregate numbers are increasing, the fraction of active addresses on the network is decreasing.

Active addresses made up 1.05 percent of all addresses on January 1, 2021, peaked at 1.66 percent on April 25, and have since decreased to 0.86 percent as of Tuesday.

Since the beginning of 2021, the number of whales with more than 1,000 ETH has also been decreasing. Glassnode, an on-chain analytics business, said on Sunday that whale wallets had hit a four-year low of 6,226.

According to Ethereum data aggregator Ycharts, the average daily quantity of transactions has remained stable around 1.2 million since the middle of December. High gas rates, as well as alternatives such as cheaper and frequently quicker sidechains and layer-2 solutions on Ethereum, may be factors. This was mentioned by Sameep Singhania as one of the reasons he opted to create Quickswap on Polygon.

Following a massive surge in use in May, the Polygon (MATIC) sidechain has averaged more than twice Ethereum’s daily transaction volume. Polygon presently receives around 3 million transactions every day.

The SpookySwap team similarly realised the value of developing on a sidechain rather than the Ethereum mainnet for its consumers. SpookySwap is a decentralised exchange (DEX) that utilises the Fantom Opera (FTM) L2 solution. “Fantom gives a tremendous potential for DeFi consumers with speedier transactions and much reduced gas expenses,” the team announced on Tuesday.

By total value locked (TVL), Ethereum remains the dominant smart contract platform in the ecosystem. According to the on-chain data portal Defi Llama, Ethereum presently has $124.24 billion in TVL, far outstripping the runner-up Terra (LUNA) with $15.04 billion.

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