By
Chimamanda U. Martha
May 14th, 2024
The choice of Ethereum as a digital currency to own is not far-fetched as the coin is one of the most promising cryptocurrencies in terms of utility.
Ethereum (ETH), the second-largest digital currency in the world is seeing its adoption numbers rise as Glassnode data shows the number of investors’ addresses holding at least 0.1ETH have surged to a new All-Time High (ATH). Per the data, this number is pegged at 6,895,205, up from the 3,638,204 addresses that were reported to be holding the same number of Ether at the start of last year.
📈 #Ethereum $ETH Number of Addresses Holding 0.1+ Coins just reached an ATH of 6,895,205
Previous ATH of 6,894,755 was observed on 10 February 2022
View metric:https://t.co/rW81qhwy4d pic.twitter.com/fISeL353ku
— glassnode alerts (@glassnodealerts) February 14, 2022
The Glassnode data has become highly significant in profiling the growing popularity of the most established coins amongst retail investors. As of today, Ethereum is changing hands at $3,110.66, up 6.10% in the past 24 hours according to data from CoinMarketCap. As a result, the holders of at least 0.1 Ethereum are those with $311 worth of the cryptocurrency in their wallets.
Are There Any Reasons for Growing Number of Ethereum Addresses?
The choice of Ethereum as a digital currency to own is not far-fetched as the coin is one of the most promising cryptocurrencies in terms of utility. The Ethereum blockchain, despite the emergence and growth of other competing protocols, still remains the most used blockchain network in the world.
A number of the most prestigious Non-Fungible Token (NFT) collections keep making their way to the Ethereum blockchain, a new trend that significantly complements the massive growth of decentralized finance protocols on the platform. With Ethereum, there is a constant demand for the digital currency, and this has a massive bearing on the growing embrace of digital currency.
Additionally, Ethereum is still notably cheaper when compared to Bitcoin, and the growth in the number of accumulators is proof that many retail investors trust its future potential to either catch up with or displace Bitcoin in the near future.
Ethereum Investors and the Prospects of Deflation and ETH2.0
The Ethereum blockchain has developers that are constantly upgrading the protocols to accommodate for the growth, to the benefit of both institutional, and retail users alike. While the Ethereum Blockchain might be judged to brandish high fees, it is currently way better than it used to be, a product of the EIP 1559 or London Hard Fork upgrade implemented back in August last year.
The upgrade turned the Ethereum coin into a deflationary asset, and per data from EtherChain, a total of 1838491.2 ETH (worth approximately $5,694,629,003) have been burned thus far. Investors are generally known to gravitate towards deflationary assets as they are known to grow over time.
In all, the Ethereum blockchain is expected to be switched to the Proof-of-Stake (PoS) blockchain anytime this year, a transition that will earn the network more goodwill as it will be relatively more energy-efficient than its current Proof-of-Work (PoW) consensus model. Retail investors appear to be keeping tabs on this future potential in the Ethereum blockchain. The accumulation recorded is a way of owning a part of the promising coin before the price skyrockets like that of Bitcoin.