Ethereum Users Continue to Build Up Despite DeFi Hacking, ETH 2.0 Uncertainty

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Data shows that investors, at least investors in ETHs , get rid of market uncertainties, building up as quickly as possible.

Ethereum investors continue to stack millions of crypto

According to blockchain analysis company Glassnode, the number of Ethereum addresses holding more than one piece recently hit a new record of 1,074,282 addresses. This measure has seen constant growth since the start of the year.

In particular, the number of addresses holding more than 32 and 100 pieces has also increased, but part of this growth is a by-product of the Ethereum mixture from PlusToken.

Recent Ethereum setbacks: DeFi hacking, high fees, ETH 2.0 uncertainty

The strong accumulation habits of ETH investors arise despite a number of setbacks that occur.

On the one hand, a decentralized Ethereum- based financing protocol called Balancer has just been used on weekends for $ 500,000 in ETH and altcoins such as LINK . The attacker exploited a feat in the way the protocol implemented a deflationary cryptocurrency.

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This marks the first hack at a time when DeFi is quickly becoming the hottest trend in crypto, with increasing market influence and an increasing number of users.

Tangentially linked, Ethereum users have faced extremely high fees in recent weeks. Former Messari executive Qiao Wang said the fees could threaten the effectiveness of Ethereum as the main blockchain of smart contracts.

Referring to his personal experience with blockchain and transactions, he wrote:

“Until ETH 2.0 is fully deployed, there is an obvious opportunity for a highly scalable blockchain to dethrone Ethereum . Paying a transaction fee of $ 10 and waiting 15 seconds for settlement is simply bad UX. “

There is also uncertainty on ETH 2.0. The BitMEX research division argued that due to the complexity of the upgrade, there would likely be delays.

“ Ethereum 2.0 is exceptionally complicated. With so many committees, shards and types of votes, it seems reasonably likely that something will go wrong and that there will be further significant delays. "

The overview

Presumably, investors set aside these short-term setbacks and look at the big picture.

Namely, the image around ETH becoming more viable as an investment once Ethereum 2.0, EIP-1559 and other improvements are implemented, which will lead to increased adoption and more monetary properties for the asset. 

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