Here’s How Long The Majority Of New Ethereum Wallets Are Used Before They’re Dumped
July 30 2023 - 12:00PM
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Ethereum is currently the leader in decentralized finance,
non-fungible tokens, and smart contracts, and it continues to
maintain its position as the dominant cryptocurrency in the altcoin
market. This has led to Ethereum having the highest rate of
creation of new addresses when compared to the other blockchains.
However, data suggests most of these new addresses are dumped just
after a few days. New Ethereum Wallets Are Used for Only a
Short Time Ethereum is second to Bitcoin in terms of unique
addresses. Ycharts estimates put the number of unique addresses on
the Ethereum network to around 239.62 million. However, on-chain
transaction data shows that if you’ve just created a new Ethereum
wallet, chances are you won’t be using it for long. Related
Reading: Court Filing Suggests FTX’s $2 Billion Lawsuit Against
Genesis Is Coming To An End According to crypto data analyst Jack
Gorman, over 70% of new Ethereum wallets are used for less than 30
days before the owners stop transacting completely. While taking to
a customized graph on Dune Analytics, a blockchain ecosystem
analytics platform, the data analyst noted the rate of creation and
abandonment of new Ethereum addresses. The data show that
Ethereum has one of the highest rates of new addresses, with 2
million new wallets per month. In the past year alone, more than
26.69 million wallets were created. However, most new addresses
display minimal activity, with 66% only active for one day and
95.5% being active for less than ten days. For instance, in May
2023, 2.41 million addresses were created, with only 6.91% making
transactions after 30 days. ETH price sitting at $1,876 |
Source: ETHUSD on Tradingview.com Overall, monthly active addresses
total around 4.5 million to 7 million. This means that most wallets
don’t last long, and only 1.9 million are active for more than 10
days. Fewer addresses are used frequently and long-term, with only
400,000 addresses completing more than 100 transactions in the past
year. Why Are There So ETH Addresses? Ethereum has had one of the
most impressive adoption rates in recent years. The creation of new
addresses provides valuable insights into improving adoption and
longevity, and the creation and abandonment of addresses can be
traced to airdrop hunters. Airdrop hunters create multiple
addresses with the sole aim of farming ERC-20 tokens from
airdrops. Related Reading: Shiba Inu Reclaims 14th Spot In
Market After 5% Jump While the retention rate of new wallets is
really low, Ethereum is blessed with various holders, including
smart contract addresses and centralized exchanges. The Eth2 Beacon
Deposit Contract has the largest address, boasting more than 27.6
million ETH and a 22.9% stake in the network. Featured image from
iStock, chart from Tradingview.com
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