In more bullish news relating directly to Ethereum fundamentals, the second-largest crypto by market cap has seen the most new addresses created in a single day in the last 35 months.
The cryptocurrency space has largely seen positive price growth, including the leading smart contract platform.
Ethereum may be having one of its biggest years so far, as the system migrates over to Proof-of-Stake (PoS) verification with the launch of 2.0. Alongside this release, ETH witnessed a yearly price increase of around 4x as the Ethereum price flirts with the $600 barrier.
Three Year High
With 177,520 new ETH addresses, the Ethereum community passes a daily milestone that hasn’t been seen in years.
Data from on-chain insights and metrics platform Santiment reveals a period two years ago where Ethereum was only producing 40,000 new addresses a day, sometimes as low as 25,000.
The increased use of DeFi and the migration to ETH 2.0 appears to have brought a notable turnaround.
DeFi’s Impact on Ethereum
Decentralized Finance (DeFi) is the ability to conduct peer-to-peer financial transactions without the need for a third party like a bank. Some examples of DeFi applications are decentralized exchanges, peer-to-peer loan services, or decentralized marketplaces.
DeFi applications utilize smart contracts, or computer-generated, pre-determined contracts, to uphold the rules agreed upon by the parties involved.
This revolutionary technology mainly consists of ERC-20 tokens that were built on Ethereum. Skyrocketing use this year has increased from less than $1 billion in total value locked (TVL) to over $15 billion TVL in less than a year.
Beyond breaking a three-year record for new Ethereum addresses, Ethereum has reached another milestone by breaking one million unique addresses taking part in DeFi applications.
In mid-September of 2019, Mythos Capital founder Ryan Sean Adams tweeted:
“It takes 10,000 hobbyists to change the world. 10,000 Usenet hobbyists gave us the internet. 10,000 Homebrew computer hobbyists gave us the PC revolution. 10,000 Bitcoin hobbyists gave us money without authorities. 10,000 DeFi hobbyists are now giving us a bankless money system.”
In this short amount of time, DeFi has grown from slightly over 10,000 accounts to over 1 million, a 100x increase. The three-year record of single-day Ethereum addresses created is likely, at least partially, a result of the 2020 DeFi boom.