Ethereum is seeing massive adoption right now
The number of addresses holding between 0.1 and 1 ETH has reached a new all-time high, according to data provided by IntoTheBlock. The growing number of relatively small wallets is one of many adoption indicators that could suggest that Ethereum could become a widely used asset.
As the data suggests, the number of small Ethereum addresses has faced an impressive 98% increase since the beginning of 2021, which resulted in 1.78 million ETH being held by small wallets.
The reason for the increase in the number of coins held by smaller wallets is more likely related to both Ethereum’s fundamental growth and rising prices for the native asset. In 2021, ETH has become one of the best performing cryptocurrencies, gaining around 400% at its peak in November.
In addition to becoming an attractive investment opportunity for retail traders, Ethereum established itself as a great utility coin with numerous use cases in various blockchain-related areas: DeFi, NFTs, staking and others.
According to data from WatchTheBurn, due to the heavy use of the network by various on-chain solutions, Ethereum has burned over 1.8 million coins with a current value of $5.6 billion. In addition to the high burn rate, Ethereum generates the highest revenue among all blockchains in the industry.
While the number of small Ethereum wallets is gradually increasing, the activity of the same group of wallets stays relatively low, which was more likely tied to another period of high gas consumption that forced users to pay up to $50 worth of ETH per one transaction on the network.
At press time, Ethereum is trading at $3,086, down 36% from its ATH and up 42% from the 2022 low.
