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More Than 100 million Addresses With Non-Zero Balances Will Exist In Ethereum.

Ethereum News

The count of non zero balance ETH wallets reached a new high record of 92.5 million on Monday. The beleaguered FTX did not affect the non zero balance wallets linked to Ethereum – the second largest crypto asset by market cap. Some crypto analysts believe that investors have kept ETH as a proxy for wider adoption of crypto. This holds water as Ethereum has scaled and have been the genesis of an ecosystem of layer 2s’ If one takes a closer look at the statistics this could mean a bullish trend incoming for Ethereum.

Will ETH reach 100 Million Non-zero Address Wallets in Q2?

Over the last three years, Ethereum has generated about 20 million addresses holding a non-zero balance per year. With the available statistics, the math here is simple: ETH just needs 7.5 million addresses to reach the 100 million mark. This could possibly happen by Q2 2023. 

The crypto market is volatile and reacts quickly to any developments around the world of blockchain. Crypto investors and traders won’t be too surprised after the asset’s price records an array of upticks after ETH’s non zero wallet count reaches 100 million.

Additional Read: Bitcoin Price Prediction

Other Metrics that assess the asset’s potential 

New addition of non zero Ethereum addresses is a preliminary metric to forecast a bull run for the asset. Just growing numbers of non zero addresses does not explicitly indicate a bullish trend for ETH. However, there are a number of other parameters that point  strong indication and sense of a bull trend. According to a report by blockchain software development company

Alchemy, the number of smart contracts deployed on the Ethereum mainnet catapulted by 300% in 2022. This also factored the analysis that the smart contract development on Ethereum grew enormously and even matched to the stats of 2021 despite 2022 being a rough winter for all. 

 

That means that smart contract deployment growth roughly matched its rate of increase seen in 2021, despite 2022’s bear market. 4.6 million smart contracts were deployed on the Ethereum blockchain at the end of Q4 2022.  

“The Web3 developer community is proving to be extremely resilient,” commented Jason Shah, Alchemy’s head of growth. “This report shows that they’re as focused and motivated as ever to build the future of this ecosystem—while honestly acknowledging the unnecessary setbacks we have seen in 2022,” he added.

Ethereum transition to a Deflationary token: another milestone for ETH 

The crypto market saw a year long bear run which impacted ETH’s price. ETH recorded a low price by 67.5% from its record highs in November 2021. 

The historical milestone for any crypto to happen was seen in 2022 September. The Ethereum Beacon chain merge. In September, 2022 the Proof of Work Ethereum chain merged with the Proof of Stake Beacon chain. This resulted in the transition of ETH from a PoW chain to PoS chain.

The merge will help Ethereum to transition to a carbon free blockchain. The merge will attract institutional capital flow to the newly improved chain. It may even beat Bitcoin – the no 1 crypto asset by market cap. The inflation rate of Ethereum also dropped significantly post the merge. On 15th of January, Ethereum’s annual issuance rate was around 0.55%, while its burn rate was just under 1.2%. Hence, Ethereum is experiencing deflation at a rate of approximately  0.65% per year. Before the merge Ethereum’s inflation rate was 4-5%.

Source: Glassnode 

Some crypto analysts have drawn an observation that the deflationary impact on ETH post the merge may have acted as a catalyst from preventing ETH to fall back under  $1,000. Ethereum did record annual lows post the FTX collapse, as did BTC. 

Read More: Ethereum Gas Fees Explained

Ethereum will soon undergo its next major upgrade. The “Shanghai” hard-fork is expected to happen in March 2023 and will allow staked ETH to be withdrawn for the first time. 

Source: Crypto News 

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