ETH Holders Grow by 20 Million in the Past Year; Popular Ether Wallet Moves to Layer 2 Networks
With Ethereum “straining under the weight of its own success,” MetaMask says cross-chain compatibility is the best immediate solution to high gas fees.
The price of Ether is trading around $1,550, recovering from the deep losses it suffered last week that saw the digital currency crashing to about $1,291, a level last seen on Feb. 1st.
This correction represented a drop of almost 37% from the all-time high of $2,040, just a week before. Still, Ether is up 112% YTD and recorded an uptrend of 14.5x since its March low that saw it dipping under $100.
During this wild uptrend, the number of ETH holders with a balance grew by almost 20 million, with 54.12 million addresses now holding the digital asset, as per IntoTheBlock.
Just like holders, the number of Ether locked with Grayscale Investments, the largest digital asset manager, has grown to 3.17 million ETH.
A similar uptrend is seen in the ETH locked in decentralized finance (DeFi), at 8.6 million ETH, reaching the ATH of 9.8 million ETH in mid-September.
Another 3.2 million ETH are locked in ETH 2.0 deposit contract following the update of Beacon Chain that introduces proof-of-stake to the Ethereum ecosystem. While “Phase 0” doesn't change anything about the Ethereum network in use today, it is the sharding, a multi-phase upgrade, that will be improving its scalability and capacity.
Because scalability will take time to come to the second-largest network, the crypto market sees the rise of L2 scaling solutions and people making use of other blockchains like Polkadot (DOT) and Binance Smart Chain (BSC).
Just yesterday, the popular Ethereum wallet, MetaMask, announced cross-chain compatibility, saying moving to Layer 2 networks is the best immediate solution to high gas fees.
In its official announcement, MetaMask acquired by ConsenSys noted how the fundamentals of Ethereum are getting stronger — 1.3 million transactions settling more than $12 billion daily, 74% of all stablecoins worth $30 billion issued on Ethereum, over 5 million unique NFTs bought and sold for over $300 million.
And “amidst the burgeoning demand to access liquidity and activity on Ethereum, the network is straining under the weight of its own success.”
Through its Customers Networks API, MetaMask allows developers to recommend Polygon (formerly Matic), Arbitrum, and Optimism; sidechains like SKALE and xDAI, and any EVM-compatible chain.