Ethereum Active Addresses Hits a New ATH But Binance Smart Chain Already Crossed 1 Million
- Ethereum active addresses have exceeded the previous highs seen in Jan. 2019, at the top of the last bull market and Nov. 2020.
As the price of Ether hit a new ATH last week at about $2,650, so did the network fundamentals. Active addresses hit a new high of 771,000, up from the record high of 739k in November last year and 735k in January 2018.
Back in 2017, initial coin offerings (ICOs) were the ones driving the growth, then last year, decentralized finance gained momentum, especially yield farming and DEXs like Uniswap and SushiSwap.
The popularity of Ethereum has been growing amidst the institutional circle as well as we reported, four Ether ETFs are currently trading on the Toronto Stock exchange amassing funds while recently Rothschild Investments also purchased 265,302 shares in Grayscale’s Ethereum Trust, totaling $4.75 million.
The network is also due for a major upgrade, with EIP 1559 expected to come in July, and the Merge can also come as soon as October this year.
But while some like Weiss Crypto argue that the wannabe ETH killers don't stand a chance, it is worth noting that for the time being, the centralized Binance Smart Chain (BSC) is really seeing the numbers.
Whether in active addresses or daily transactions, BSC is leading without a doubt. Compared to Ethereum’s under 800k active addresses, BSC hit a new ATH over 1 million last week and is currently above 800k and on an uptrend.
BSC’s growth has been thanks to high fees on the second-largest network while BSC offers cheaper transactions. Andrew Kang, co-founder of Mechanism Capital said,
“It's interesting that these ethereum network activity metrics are only just starting to surpass peak of last cycle, and growth doesn't yet seem parabolic, indicating that there may still be a lot of room to grow. Meanwhile, BSC activity is on a monster parabola with no signs of stopping. It is apparent that while the pie is growing, BSC is capturing the lions share of the new retail entrants.”
To attract even more crowd, the leading exchange has launched Binance NFT with an aim to become the “premier destination” for non-fungible tokens and digital collectibles.