- The Ethereum platform reported a 68% decline in active accounts
- However, the platform has exceeded 50 million unique accounts
Despite the current decline in the value of various cryptocurrencies, we saw a reason to celebrate.
Saturday 15 December 2018, the Ethereum the platform has reached an important milestone exceeded 50 million unique addresses.
It had also seen its highest single-day earnings of unique addresses this year, as on January 4, 2018, 352,888 unique addresses were added.
It is interesting to note that the Ethereum platform is seeing its highest number of unique addresses, but it also sees a decrease in active addresses.
An active address is defined as "the number of unique send and receive addresses that participate in transactions on a given day." Of Coinmetrics.
The number of active addresses on the platform peaked this year and on January 16, 2018, there were 719,093 addresses active.
This figure saw a 68% drop to 232,085 active addresses on December 15, 2018. 0.46% of Ethereum addresses are now classified as "active".
In addition, the total number of daily transactions has suffered a severe blow, rising from its peak of more than 1.3 million per day in early January to around 551.916 per day on December 16, 2018.
For what reason?
There are a number of possible factors for the decline of active addresses. The Ethereum platform has consistently maintained a balance of over 70,000 accounts added every day.
However, the number of accounts actually used seems to have collapsed.
One theory is that the decline in the value of cryptocurrency has led people to use the platform less.
It could also be a decline in the popularity of dApps.
There is also the possibility that there is an industry trend. The peak of the creation of a single day, of active accounts and of daily transactions occurred at the beginning of 2018, a month after Bitcoin recorded a massive price increase.
Bitcoin, along with many other currencies, is now experiencing a decline and this could also have extended to the Ethereum platform.
The decline of activity on the Ethereum platform could be a side effect of crypto-decline, a decline that many in the industry consider temporary.
As in the case of crypto-decline, only time will tell how long the decline in active accounts will last and what the long-term effects will be.