Ethereum Daily Active Users Multiply Ninefold; Projected to Reach $22k by 2030
Summary:
The Ethereum ecosystem has nine times more daily users than four years ago, a trend likely to drive ETH to record highs. Data from Bitwise shows Ethereum and its scaling solutions recorded over 250,000 daily users in Q1 2020 and around 2.25M in Q1 2024. Crypto ETF issuer VanEck expects Ethereum to hit $22,000 by 2030 due to increasing demand from traditional finance and Big Tech. Despite having fewer users, Ethereum still rakes in three times more in fees than top layer 2 networks and Solana combined.
The Ethereum ecosystem now boasts nearly nine times as many daily active users as in the same period four years ago, a spike in demand analysts predict will catapult ETH to unprecedented levels. Comprehensive data from crypto ETF provider Bitwise unveils an extensive user base for Ethereum and its extended networks, Arbitrum and Polygon. The first quarter of 2020 registered over 250,000 daily users, primarily sourced from Ethereum's mainnet. By the first quarter of 2024, this number had risen dramatically to roughly 2.25 million, representing a nearly ninefold increase, inclusive of the additional layer-2 networks, Optimism, Base, and zkSync, launched later on.
Due to transaction migration to layer-2 networks, Ethereum accounts for a considerably reduced segment of daily active users. The Ethereum mainnet observed about 378,000 active users on June 4th, while Polygon reported 1.3 million. The remaining four layer-2 networks collectively recorded around 1.5 million active users. The mainnets, Optimism, zkSync, and Base became publicly accessible between late 2021 and 2023.
Even though Ethereum's user figures might seem disappointing, they are strategically included in the platform's growth plan. The platform's co-founder Vitalik Buterin is steadfast in employing layer-2 networks as a mechanism to scale Ethereum, claiming the networks function similarly to the former Eth 2 sharding plan. Additionally, the networks could cultivate expansions in Ethereum's diverse "subcultures."
In related news, VanEck, another crypto ETF provider, has adjusted its price target for Ethereum, predicting the cryptocurrency will reach $22,000 by 2030. In a blog entry on June 5, Matthew Sigel, VanEck's chief of digital asset research, and two coworkers updated their previous 2030 forecast for Ether—from last year's $11,800—to reflect revenue per user exceeding that of numerous Web 2 companies. They asserted that this trend would become increasingly prevalent amongst established financial markets and influential technology companies. Furthermore, they expect the imminent clearance of spot ether ETFs for trade on U.S. exchanges. These emerging developments would avail financial consultants and institutional investors access to this unique asset and its inherent price and liquidity benefits characteristic of ETFs.
Despite its dwindling user numbers, Ethereum’s blockchain still generates thrice the fees of its competing layer 2 networks and Solana combined, a circumstance Ryan Sean Adams, the co-founder of Bankless, described as a "modern miracle." Layer 2 networks also contribute Ethereum fees when transactions settle on the main chain, thus strengthening its security.
CoinGecko's recent pricing reveals that Ether is currently trading at $3,862, showing a modest 1.3% increase in the last 24 hours. Many speculate that the forthcoming introduction of spot Ether ETFs would catalyze a surge in Ether's price to record-breaking highs. However, some caution that new ETFs' intake would fall significantly short of those dedicated to Bitcoin.
Published At
6/6/2024 5:14:03 AM
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