By Alicia Maher
In recently published reports by a crypto watchdog, InfoTheBlock, it has been revealed that figures relating to retail Ethereum traders climbed to an unprecedented high of late. The number of crypto wallets holding in between 0.1 Eth to 1.0 Eth has multiplied exponentially, indicating that Ethereum is achieving an extensive utility and adoption.
Small Holder Ethereum Addresses Rise by 98%
The watchdog report went ahead to reveal that those new small crypto wallets holding small Ethereum units have climbed by about 98%. Such wallets have steadily increased in number from the early days of 2021, and currently, they cumulatively hold about 1.78 million Eth. This amounts to some 4.54% increase on a monthly basis.
Small Eth wallets might have been increasing their holdings as a result of the essential improvement of the Ethereum network. In the course of the last year, Ethereum focused steadily on improving and implementing necessary upgrades to its system that have led to the actualization of its new version, Ethereum 2.0. This update has successfully attracted a lot more investors to the Ethereum network and coin.
Ethereum was high in the number of the best digital currencies in 2021, following its value increase by 400% to a selling price of about $48,000 in November 2021. Although the coin had since slipped from that coveted height as big buyers’ support waned, it nevertheless keeps having some buying pressure coming from these smallholders to keep it afloat.
Ethereum’s network has the most considerable Total Value Locked in the cryptocurrency space. The network also has the most adoption from decentralized finance project developers, non-fungible tokens developers, staking platform developers, and much more. This high level of multi-platform adoption leads many analysts to say that Eth as a universally relevant coin could become a good reserve of value for all in little time.
The easy process of burning the Eth coin has also been a contributing factor to its high demand in the market. The burning process was launched by the Ethereum network in August 2021. It was launched through the London Hard Fork upgrade. Thus far, a total of 1.8 million Eth has been successfully burned with a worth of about $5.6 billion.
Ethereum’s Troubles Affects All
Of all cryptocurrencies, it is Ethereum that has had the most issues with scalability, therefore, the need to upgrade into Eth 2.0. Ethereum then necessarily charges a considerably high gas fee that could be as high as $50 on each transaction carried out.
The increasing gas fees adversely affect smaller traders, thus making their trading activities on the network relatively low. A lot of small traders get inactive because of exorbitant gas fees.