number of Ethereum addresses Holding a non-zero balance set a new record of 92.5 million on Monday. The bear market of 2022, which ended in November with the collapse of one of the world’s largest cryptocurrency exchanges, did not affect the increase in the number of non-zero balance addresses.
some analysts see the numbers Ethereum Addresses having non-zero balance as a proxy for Second largest cryptocurrency by market capitalization Broad “adoption”. Viewed through that lens, the steady, seemingly unstoppable increase in the number of non-zero balance Ethereum addresses can be interpreted as a long-term bullish signal for the ETH cryptocurrency.
100 million non-zero address wallets in Q2?
Over the past three years, Ethereum has added approximately 20 million addresses with a non-zero balance per year. The fag box calculation behind it thus implies that, with about 7.5 million to go, the 100 million address mark will probably be hit sometime in Q2 2023.
No doubt this would be big news. Cryptocurrency markets are notoriously fickle when it comes to responding to market narratives. It shouldn’t be too surprising to see merchants ETH Get an increase in the run-up/immediate result to the 100 million non-zero address mark being hit amid all the hype and positive press the achievement will potentially attract.
Other metrics also indicate continued strong network growth
The increase in the number of non-zero balance Ethereum is seen by some as an overly crude metric – not every new non-zero address means a new Ethereum user. Fortunately for Ethereum bulls, there is a long list of other metrics pointing to strong continued network growth.
In a recently released report from blockchain software development company Alchemy, the number of smart contracts deployed on the Ethereum mainnet is set to grow by close to 300% in 2022. This means smart contract deployment growth will roughly match the rate of growth seen in 2021, despite a 2022 bear market. The report states that 4.6 million smart contracts were deployed on the Ethereum blockchain at the end of Q4 2022.
“The Web3 developer community is proving to be extremely resilient,” commented Jason Shah, head of development for Alchemy. “This report shows that they are as focused and motivated as ever to build the future of this ecosystem – while honestly acknowledging the unnecessary setbacks we saw in 2022,” he said.
Elsewhere, the number of Ethereum network validators has recently passed 500,000. It crossed 400,000 as recently as last July. A network validator is a computer that runs software that verifies and validates transactions on a blockchain. A higher number of validators is seen as a sign of network strength, as it implies that it will be more difficult for a malicious group of validators to gain control of the network and corrupt the blockchain.
Another narrative to gain ground in Ethereum deflation 2023
The bear market in cryptocurrency markets that began just over a year ago has meant that Ethereum’s price decline (ETH is down about 67.5% from the record high it printed in November 2021) has been the dominant story in recent quarters.
But a significant change was made to the Ethereum protocol in September 2022, which is likely to give the cryptocurrency a major long-term boost. Last September, Ethereum transitioned from using a proof-of-work consensus mechanism to using a much less energy-intensive one. -proof-of-stake consensus mechanism.
Not only does it ease concerns about the cryptocurrency’s environmental impact, it could help attract institutional capital flows in the coming years where Ethereum’s more energy-intensive rival Bitcoin Might struggle, but Ethereum’s inflation rate has also dropped sharply.
Actually, Sunday 15th In January, Ethereum had an annual issuance rate of around 0.55%, while its burn rate was less than 1.2%. As a result, Ethereum is currently experiencing deflation at a rate of approximately 0.65% per year. Back when Ethereum was still a proof-of-work blockchain, it had an inflation rate of 4-5%.
Some analysts have suggested that the merge may have had a deflationary effect that helped prevent ETH from falling below $1,000 and reaching new yearly lows shortly after the collapse of FTX. for against, Bitcoin FTX hit new yearly lows in the wake of the debacle.
Ethereum will soon undergo its next major upgrade. ,Shanghai“The hard-fork is expected to happen in March and will allow withdrawals of ETH for the first time, a change that is seen as a huge positive for the protocol as it will encourage more investors to stake their ETH.
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