Ethereum may have diffused the bomb, but users still skeptical

The prices of most major cryptocurrencies have responded positively to the new year. With the price of Bitcoin [BTC] rising, other altcoins are following its lead and noting a spike in price too. Ethereum [ETH], the second-largest crypto in the world, completed its crucial Muir Glacier update recently, having noted an almost 12% growth since.

The update that provided a temporary solution to Ethereum’s difficulty bomb problem aided in bringing the block production time back to its average. However, the usage took a hit after the completion of the hard fork. According to the data provider Coin Metrics, ETH active addresses fell by 16% week-over-week and transfer count fell by over 10%. On the other hand, BTC reported an uptrend in both active addresses and transfers with 0.6% and 2.7%, respectively.

Source: Coin Metrics

Apart from Ethereum, XRP also noted a fall in active addresses by 2.4%, while its transactions also reported a fall of 17.6% over the past week. Litecoin [LTC] could be joining the league of Ethereum as the sixth-largest coin also noted a fall of 28.2% in active addresses. For the same, the transfers also plummeted by 25%.

The Ethereum version of Tether [USDT-ETH], Paxos [PAX], and USD coin [USDC] grew by little over 2% over the past week, whereas major cryptos like Bitcoin and Ethereum grew by 0.52% and 0.94%, respectively. Apart from the market performance, USDT-ETH, USDT Omni [USDT], and USDC saw an increase in addresses with a balance of at least $1 million over the past year.

Source: Coin Metrics

The previous report had noted the number of addresses with a balance of at least $10 and explained,

“The number of addresses with a balance of at least $10 also increased for most of the major cryptoassets over 2019, another positive sign for overall crypto adoption.”