Ethereum’s daily user base sees nine-fold increase

by / ⠀Fintech News / June 7, 2024
"Ethereum User Increase"

The Ethereum network has witnessed a remarkable growth in daily users throughout the last year, reaching over 250,000 users in according to cryptocurrency ETF provider Bitwise. This surge in activity can be attributed to the increased use of Ethereum’s main network, the introduction of new networks, and the evolution of decentralized finance (DeFi) projects. The explosion of interest in DeFi applications and non-fungible tokens (NFTs) represents a broader shift in the crypto market.

As we moved into 2024, the daily user rate has soared to approximately 2.25 million, a nine-fold increase. This includes users from recently introduced networks such as Base and zkSync. With these new networks providing faster and more efficient transactions, the number of monthly active users shows a steady growth pattern, pointing towards increased platform adoption. Transaction speeds have also seen a significant increase, displaying the scalable capabilities of the recently integrated networks.

Treating layer-2 networks as an effective scalability solution, Ethereum co-founder Vitalik Buterin proposes that high-intensity applications operate on separate tracks from lower-intensity applications, circumventing bottlenecks and fostering a quicker and more efficient network. Buterin believes that integrating layer-2 solutions could allow various Ethereum applications to specialize, strengthening the ‘subcultures’ within the Ethereum network.

Ethereum’s user base expansion and implications

Despite having a smaller user base than some top layer-2 networks and Solana, the Ethereum blockchain generates triple the fees. This is due to the high transaction fees connected to listing transactions on the primary chain, proving its robust security feature. Meanwhile, layer-2 networks and Solana capitalize on the high transaction fees Ethereum charges, maintaining their relevance in the market.

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VanEck analysts predict a bright future for Ethereum, suggesting that Ethereum’s potential upgrades could significantly increase scalability and functionality. They believe this could eventually lead to Ethereum’s integration into DeFi applications, facilitating a surge in coin value. While recognizing the cryptocurrency market’s volatility, VanEck remains optimistic about Ethereum’s growth prospects.

The latest statistics from CoinGecko show that Ether is currently traded at $3,862, marking a 1.3% increase in the last 24 hours. Experts predict that the launch of Ether ETFs could drive Ether’s price to record highs. However, they suggest that the influx of capital into these new crypto ETFs may not keep pace with Bitcoin ETFs.

About The Author

April Isaacs

April Isaacs is a freelance writer and editor with over 10 years of experience. From the art scene in Paris to pastures in Montana, April has covered individuals' stories and can confirm that no two stories are the same.

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