On-chain data shows the Ethereum network hosts more than three times the user base of Bitcoin and is nearing the 190 million holder milestone.
Ethereum is widening the adoption gap with Bitcoin
In a new post on X, on-chain analytics firm Santiment shared how various top networks in the digital asset sector such as Bitcoin and Ethereum currently compare to each other in terms of total amount of holders. This indicator, as its name suggests, measures the total number of addresses holding a non-zero balance on a particular blockchain.
When the value of this metric increases, it means that new wallets with balances are appearing on the network. Such trends can occur for various reasons, such as new investors entering the market or old investors who previously sold making a profit. Existing users creating new wallets for privacy purposes may also naturally contribute to this trend.
In general, all of these factors are likely to be in play at once whenever the total value of holders increases. In other words, it appears that some net adoption of virtual currencies has occurred.
On the other hand, the falling indicator suggests that some users are clearing out their wallets on the blockchain as they decide to exit the market.
Now, here is a graph shared by Santiment that shows trends in the total value of holders of eight major cryptocurrencies.
Looks like ETH has a massive lead over the rest | Source: Santiment on X
As shown in the graph above, the highest ranked coin in terms of number of holders is Ethereum, with approximately 189.5 million non-empty addresses on the network. This is a huge amount and is only increasing recently.
Meanwhile, total Bitcoin ownership has remained flat in recent months, suggesting that while Ethereum continues to attract users, the cryptocurrency’s adoption is stagnant. Currently, BTC has 59.1 million wallets with balances, which is less than a third of the size of ETH’s user base.
Ethereum’s dominant position in this metric is due to the rich DeFi ecosystem that blockchain hosts thanks to its smart contract capabilities. Speaking of the ETH ecosystem, stablecoins are a major part of it, the most dominant of which are USDT and USDC, both of which are on this list with 13.6 million and 6.8 million holders, respectively.
Among altcoins, Dogecoin has a total of approximately 8.3 million holders, surpassing XRP and Cardano.
ETH price
At the time of writing, Ethereum is trading around $2,270, down more than 2% in the past 24 hours.
The price of the coin seems to have retraced from its weekend high | Source: ETHUSDT on TradingView
Featured image from Dall-E, chart from TradingView.com
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