More than 26.69 million new Ethereum wallets have been created in the past year, averaging around 2 million new wallets per month, showing the growing interest and adoption of Ethereum in recent times, as reported by Jack Gorman, a data scientist at Variant Fund.
However, not all of the wallets mentioned actively engage with the Ethereum network. According to the report, a mere 4.5-7 million Ethereum wallets conduct at least one transaction per month, whereas more than 70% of wallets become dormant after just 30 days of activity.
One reason for the low retention rate of new Ethereum wallets is the occurrence of retroactive airdrops. These airdrops involve distributing tokens or NFTs to current wallet holders based on specific criteria. Some enthusiastic “airdrop hunters” have even qualified for 12 different airdrops within the past year.
To improve their chances of receiving free tokens or NFTs, some individuals known as “airdrop hunters” resort to a questionable practice. They create numerous Ethereum wallets with minimal activity and employ sophisticated software to manipulate the system.
For example, during the ARB airdrop, which generated significant hype last year. Unfortunately, this campaign attracted fraudsters who controlled thousands of wallets; as a result, over 2,400 wallets were compromised.
Only A Fraction Of Ethereum Wallets Show Sustainable Activity
The report concludes that there are far fewer Ethereum wallets actively engaging on the network compared to the total number of created wallets. Only around 1.9 million wallets remained active for more than 10 days in the past year. Surprisingly, three out of every five wallets made just one transaction.
Ethereum is currently undergoing significant upgrades to enhance its scalability, security, and sustainability. One of the recent upgrades introduced through the London hard fork involved implementing the EIP-1559 proposal.
This proposal brings changes to the fee structure by incorporating a burn mechanism for a portion of the fees. The implementation of these upgrades has the potential to amplify Ethereum’s appeal and value among both existing and new users.
The current price of Ethereum stands at $1,878.59, with a market cap of $227.20 billion. The 24-hour trading volume amounts to $2.49 billion. Over the past 24 hours, Ethereum has experienced an increase of +0.16%. Its circulating supply is approximately 120.94 million.