Number of New Ethereum Wallet Addresses is at Lowest Point This Year

Bittime - In the middle of the year In 2024, the number of new Ethereum wallet addresses has reached its lowest point. Not only that, the average number of active addresses and transactions on the Ethereum network has also decreased, approaching its lowest level in the last 6 months.  

Number of New Ethereum Wallet Addresses Decreases

Source: theblock.co

One factor thought to have contributed to this decline was the launch of a spot Ethereum ETF on the US stock market. ETFs are potentially the reason why some investors prefer ETFs over creating a new wallet address to store ETH directly.

Given the existence of alternatives such as ETFs, investors may feel more comfortable investing through more familiar mechanisms in traditional markets rather than engaging directly in the crypto ecosystem which requires deeper technical understanding, including the creation and management of Ethereum wallet addresses.

Active Wallet Addresses and Transactions on the Ethereum Network

Source: theblock.co

Source: theblock.co

In addition to the number of new wallets, the average number of active addresses and transactions on the Ethereum network also showed a decline that was near its lowest point in the last six months. 

This decline reflects a decrease in activity among users of Ethereum, which was previously one of the most active blockchain networks in the world.

Comparison with Solana and Bitcoin

Interestingly, while the number of new Ethereum wallet addresses decreased, Solana actually experienced an increase. According to data from The Block, the number of new addresses on the Solana network is increasing, largely fueled by Solana's rapidly growing DEX ecosystem. The still high popularity of meme coins has also contributed significantly to the increase in activity on the Solana network.

Apart from Solana, the Bitcoin network is also showing an increasing trend in the number of new addresses despite the overall sluggish crypto market. However, the increase in the number of new wallets on the Bitcoin network does not directly result in an increase in transaction fees or on-chain activity. This shows that although there are more new wallet addresses, network activity related to transactions and fees has not increased significantly.

Impact of Decreasing Number of New Ethereum Wallet Addresses

A decline in the number of new Ethereum wallets not only impacts the number of active addresses and transactions, but could also impact the DeFi and NFT ecosystems built on the Ethereum network. 

With fewer new addresses being created, this could mean that there is a decline in the number of new users entering the Ethereum ecosystem.

Other than that, the decline in the number of new Ethereum wallet addresses has led to speculation about a possible shift in strategy among investors who are now more likely to look for alternative ways to invest in Ethereum. 

If this trend continues, Ethereum may need to consider steps to regain investor interest in order to remain relevant and competitive amidst increasing competition with other blockchain networks such as Solana and Bitcoin.

How to Buy Crypto with Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime. over is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

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