By Philip Maina
2 weeks agoSun Jul 28 2024 12:11:13
Reading Time: 2 minutes
- Active addresses across the Ethereum blockchain have increased by over 120% in six months
- Ethereum-based networks with the highest daily active addresses include Base and Linea
- The rise in active addresses across the blockchain is influenced by ongoing campaigns by the blockchain’s scaling layers
The Ethereum blockchain registered an uptick in daily active addresses in the last six months with the rise attributed to campaigns by Ethereum layer 2 platforms. According to a report by Coinbase Institutional and Glassnode, Arbitrum, Linea and Base are among the top Ethereum scaling layers with the highest number of daily active addresses in the last six months. The report discovered that active users across the Ethereum ecosystem increased by more than 120%, with top layer 2 networks registering close to two million active daily addresses, a sign that the focus is returning to Ethereum.
59% Increase in Three Months
According to the report, layer 2s account for the largest portion of the growth compared to the main blockchain. The report cited a rise in transactions on Ethereum scaling layers which stood at 59% in Q2 2024.
The report noted that the rise in activity and users on the scaling networks is due to a growing list of new products and services like innovative ways to trade, stake and lend crypto. It added that a decrease in transaction fees on Ethereum also helped fuel activities on the blockchain.
Coinbase expects the rise in user activities to continue as products like lending and staking mature and as developers on these networks launch new products. The report, however, noted that daily active addresses on the Bitcoin blockchain declined by 20% in Q2 2024, while the number of active entities on Bitcoin fell by 16%.
Ethereum ETFs Launched
The report comes a month after the SEC closed investigations into Ethereum 2.0 and a few days after the launch of Ethereum ETFs in the United States.
Although the rise in daily active addresses on Ethereum is attributed to low fees and innovative products on layer 2s, the lead may be shortlived as Bitcoin scaling layers strive to offer lower fees and an Ethereum-like environment.
