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Key Ethereum Adoption Statistics (Updated July 2024)
Ethereum (ETH) is at the center of focus as cryptocurrency adoption gathers steam globally. Speculators, developers, and enthusiasts believe that it’s a valuable altcoin with real-world use cases. To better understand the current status of Ethereum, I wanted to shed light on some key Ethereum adoption statistics that you should know in 2024.
Key Ethereum Adoption Statistics to Know in 2024
Let’s dive into some fascinating Ethereum facts and statistics that could help you to make an informed investment decision.
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There are 275 million active Ethereum wallets worldwide
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At the end of 2023, 54% of crypto holders owned ETH, according to Security.org.
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Ethereum ranks second after Bitcoin by market cap
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Currently, the Ethereum market cap is approximately $399 billion
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The daily average value of ETH transactions stands at $1.167 million (updated on 31st of July 2024)
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The average 24h transaction volume for ETH is roughly $13.74 billion (according to Binance, updated on the 31st of July 2024)
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Close to 120 million ETH tokens are in circulation
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Ethereum owners increased by 39% to 124 million in 2023
2024 has been a pivotal year for Ethereum, with the launch of the first Ethereum spot ETFs. The launch of the funds caused a spike in outflows and sparked disappointed amongst the Ethereum community.
The ETFs make it possible to trade Ethereum on the stock market, which encourages participation from pension funds, long-term stock investors and users who are risk averese.
Despite the disappointing performance of the ETFs, Ethereum adoption as a whole has increased so far this year.
The token is up 77% YTD and currently trades at around $3310. The token’s positive performance can be partly attributed to a US court ruling in May that contradicted regulators’ classification of ETH as a security. It was after this ruling that the coin surged past $3000.
ETH’s classification as a security holds a lot of weight on wide adoption. If the token manages to bypass the classification, investor confidence will be strengthened and adoption could continue to rise.
Ethereum Adoption by Countries
We’ve selected several countries to show the level of ETH ownership. The data presented below shows adoption levels among crypto owners in different countries worldwide.
Singapore:
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According to Statista, Ethereum is Singapore’s second most popular crypto asset. 41% of crypto-asset owners in the country hold ETH tokens.
United States:
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Ethereum remains the second crypto asset of choice in the country. Data puts ETH ownership at 31.1% among crypto owners in the country. The US ranks 7th in ETH ownership among 27 countries that participated in a survey in December 2021.
United Kingdom:
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Although interest in cryptocurrency seemed to decline in the UK in late 2021, Ethereum adoption levels continued to increase. Ethereum ranked second after Bitcoin, with 33% of crypto owners holding ETH.
Germany:
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Like many other jurisdictions, data puts Ethereum as the second most popular crypto asset for Germans. 30% of crypto owners in Germany hold ETH tokens. The most recent data that I could find was from 2019 so, this percentage could be even higher now.
France:
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Reports put Ethereum as the second most popular crypto asset in France. 14% of crypto owners in the country hold Ethereum. Again, I could not find any new data from 2024 so this percentage may have changed.
Australia:
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Ethereum also emerges as the second-best crypto in the land down under. About 42.9% of crypto owners hold ETH tokens.
Ethereum Over Time
Ethereum was launched in 2015 and traded for under a dollar for quite some time— prices have since soared. Some traders prefer to buy Ethereum because it’s more eco-friendly than Bitcoin and can be used to access a large number of decentralized applications.
Despite this, Ethereum has always remained in Bitcoin’s shadow although experts see Ethereum coming to maturity soon.
Currently, the Ethereum ecosystem is rapidly growing, powering thousands of applications through smart contracts and as a transfer of value. Ethereum supports Decentralized autonomous applications (DAOs), Decentralized Finance (DeFi), Non-fungible tokens (NFTs), and the Metaverse.
These use cases have made Ethereum just more than a store of value. Thousands of real-world applications have been made, and new ones invented on the blockchain disrupting different industries especially finance. Adoption is therefore increasing by the day due to its broad capabilities.
The Explosion of D’Apps and Altcoins
ETH is primarily used to power decentralized applications that are built on the Ethereum blockchain. This means that demand for the cryptocurrency tends to spike when there is an increased appetite for these products.
2024’s ‘altcoin season‘ saw an influx of investors turning to small-cap tokens that run on the Ethereum blockchain. Meme coins such as PEPE, JASMY and SHIB saw increased interest from investors, which was beneficial for Ethereum.
The Ethereum blockchain stands as the most used network for building decentralized applications. The ecosystem currently hosts over 4000 dapps, 53 million smart contracts and 96 million user accounts.
As the appetite for decentralized products grows, so will Ethereum.
Factors Affecting Ethereum Adoption
There are several factors that affect the mass adoption of Ethereum:
Bitcoin:
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Bitcoin is synonymous with cryptocurrencies in many jurisdictions. A majority of non-technical and first-time investors tend to go for Bitcoin. Despite Ethereum’s vast array of utilities, Bitcoin enjoys the first mover’s advantage and generally affects the direction of the rest of the crypto market. Bitcoin’s dominance mostly supersedes 50%, while Ethereum typically scores under 24%. There are over 106 million Bitcoin owners globally compared to 14 million for Ethereum.
Competition:
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Alternative blockchain projects modeled after Ethereum have been established. These take advantage of Ethereum’s shortcomings, especially the higher gas fees. The slow implementations of core aspects of the Ethereum, like sharding, make developers look at other alternatives such as for DeFi, gaming, and NFT projects. Its clear that projects like Cardano and Solana are eating into Ethereum’s market share. Currently, both projects have a cumulative market dominance of 3%.
Crypto providers:
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On a positive note, you can buy Ethereum on almost all exchanges. There are many trading pairs available, including fiat currencies and cryptocurrencies. This has a positive effect because anyone can easily buy ETH tokens. Some top providers you can use to buy Ethereum include Coinbase, Binance, and eToro.
Final Thoughts
Overall, Ethereum adoption has significantly grown over the last 4 or so years. However, there is still a long way to go before adoption reaches its peak.
Ethereum stands as the second-largest cryptocurrency by market cap and adoption, sitting below Bitcoin. However, the blockchain network hosts the most decentralized products including dapps, NFTs and altcoins.
As the biggest blockchain network, Ethereum will play a crucial role in the future of cryptocurrency.
FAQs
What is the most adopted cryptocurrency?
Bitcoin is the most adopted cryptocurrency, representing more than 54% of the crypto market.
What will happen to Ethereum in 5 years?
Ethereum is expected to continue its upward trajectory for several years. This is because the blockchain network is used to power a large portion of dapps, NFTs and altcoins so demand should remain healthy.
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