According to data specialist Glassnode, the number of Ethereum addresses holding at least 0.1 ETH reached an all-time high this week. Now, over 6.8 million accounts have over 0.1 ETH, worth $268 at writing.
The popularity of ETH soared in the past year. In fact, many now claim it to be on course to overtake Bitcoin as the dominant cryptocurrency. However, there is a long way to go as the Bitcoin market cap is double that of Ethereum.
However, Ethereum continues to adapt and evolve and perhaps this is why ETH is at an all-time high. Sometime this year, Ethereum is moving to a proof of stake model, dubbed Ethereum 2.0.
ETH all-time high due to Ethereum popularity
Clearly, 2021 proved to be a pivotal year for Ethereum as it saw the number of users holding over 0.1 ETH double in size from 3 million to almost 7 million.
There are several reasons why this happened. Of course, NFTs had a lot to do with this considerable rise. 2021 saw NFTs emerge into popular culture and become a new asset class. Millions of people suddenly needed to hold ETH to buy NFTs as it is the most popular NFT market.
This impacted the number of users holding ETH, reaching an all-time high. Although, many others, including Solana, are now making headway in the NFT market.
Finally, Decentralized finance (DeFi) also played a massive part in the rise of Ethereum over the last year. DeFi is a one-size-fits-all term for peer-to-peer financial services that don’t rely on intermediaries. These financial services take place on public blockchains, and most are Ethereum based.
A combination of these two factors has helped ETH become hugely popular, and it will be interesting to see what happens as Ethereum moves to proof-of-stake later this year.