As the price of Ethereum (ETH), the world’s second largest cryptocurrency by market capitalization, continues to climb to new monthly highs, retail traders, particularly small coin holders, are wary of missing out. Ethereum is currently trading at $3,783.53, up 4.73 percent in the last 24 hours, according to CoinMarketCap. Today, the price figure was resurrected, owing to the growing optimism in the broader ecosystem.
According to Glassnode’s on-chain data, the number of non-zero Ethereum addresses has surpassed 60.8 million, indicating that more people are investing in Ethereum. According to the analytics platform, Ethereum-based contracts are excluded from the count, with only Externally Owned Addresses (EOAs) included.
The Motivator Behind Ethereum’s Future
For investors with a firm grasp of the digital currency ecosystem, it’s difficult to overlook the role Ethereum plays in the growing popularity of the decentralised finance (DeFi) ecosystem. The foundation for the current performance was laid over the last several years as the blockchain network expanded its ecosystem.
There are issues with the network as it currently exists, but most of the lapses in transaction latency and high gas fees have not deterred people from making the best use of the network possible. The positive aspect of Ethereum that investors are noticing is the network’s ability to adapt to changing realities as the broader crypto industry grows.
While the Ethereum network has seen the emergence of competitors such as Binance Smart Chain (BSC), Solana (SOL), and Polkadot (DOT), it is arguably the only network to have undergone a significant technical transformation. Through the launch of Ethereum 2.0, the network is currently transitioning to a Proof-of-Stake (PoS) architecture. The transition process is lengthy and requires significant effort, and the Ethereum Foundation is well on its way to completing it.
The Ethereum developers’ commitment to keeping the blockchain relevant in the future serves as a signal to investors who have been sitting on the sidelines. Concerns about token inflation, which are shared by other conservative investors, have been allayed by the EIP 1559 upgrade, which transformed the ETH token into a deflationary one. According to data from EtherChain, over $653 million worth of the coin has been burned thus far.