Number of new Ethereum addresses plunges to lowest level this year

Quick Take

  • As spot ether ETFs begin trading in the U.S., fewer new Ethereum wallets are being created than at any point so far this year, according to The Block’s data. 

The number of new Ethereum wallet addresses is currently at its lowest level this year following the recent launch of spot ether ETFs on the U.S. stock market. 

According to The Block's data, the seven-day moving average of new Ethereum wallets is at its lowest level since December 2023, though it remains higher than its value throughout much of 2023. 

The Ethereum network's average number of active addresses and transactions have both declined recently as well, hitting nearly six-month lows. 

The decline in these numbers following the recent launch of spot ether exchange-traded funds in the U.S. stock market may point to some investors gaining exposure to ether through those funds, rather than purchasing the tokens directly.

In comparison, Ethereum rival Solana has seen an uptick in new addresses recently according to The Block's data, as its DEX ecosystem rapidly closes the gap with that of Ethereum and memecoins continue to draw the attention of thousands.  

The Bitcoin network has also seen a recent uptick in new addresses, despite the current downturn in the market, The Block previously reported. However, the increased level of new wallets isn't directly correlating to more fees being paid on the network or increased on-chain activity. 

 


Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Zack Abrams is a writer and editor based in Brooklyn, New York. Before coming to The Block, he was the Head Writer at Coinage, a Web3 media outlet covering the biggest stories in Web3. The story he co-reported on Do Kwon won a 2022 Best in Business Journalism award from SABEW. Other projects included a deep dive into SBF's defense based on exclusive documents and unveiling the identity of the hacker behind one of 2023's biggest crypto hacks — so far. He can be reached via X @zackdabrams or email, [email protected].

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