According to Etherscan, the amount of active ERC-20 addresses has stayed about the same in 2023. The price has been staying between 200,000 and 300,000 while Ethereum prices are not going up past their highs in July 2023. As of August 2, there were about 275,000 people using ERC-20 addresses, which is more than the 156,000 people using them on June 18. “Activity has been low, but it went up a lot on June 11, with over 446,000 active ERC-20 addresses. ”
Ethereum’s price has been going up and down a lot based on how much people are buying and selling it. For example, the price of Ethereum did not go above $2,100 in the middle of 2023.
Ethereum prices go up and down a lot, and only a few coins have been destroyed.
Currently, the price of ETH is around $1,800, and it might go down soon when looking at the daily chart. Even though Ethereum’s price has been going up for the past two months, it has now slowed down. If it drops below $1,800, it may mean that the price will start going down instead of up in the near future.
As ETH is experiencing difficulties, the amount of active ERC-20 addresses is staying the same and is lower than the highest point in 2021. This means that not many people are using ETH to pay for transaction fees. Therefore, the cost of gas is cheaper because there are fewer people competing for space in the block. Usually, this would make more people want to join in and use complicated contracts in decentralized finance (DeFi).
With EIP-1559, if there is less activity, then fewer coins will be taken out of circulation. Even though there isn’t much activity on the network, the protocol still gives out 2 ETH after each block is checked. This makes it harder for the deflationary effects of EIP-1559 to work.
DeFi activities are decreasing.
Less people are interested in decentralized finance (DeFi) activities lately, so the amount of activity has decreased. As of August 2, the total amount of money locked is less than $50 billion, and a lot of it is in Ethereum. DeFi projects such as LidoDAO, Curve, and Uniswap make it easier to trade ERC-20 tokens.
Additionally, data on the blockchain shows that USDT is the token that is being traded the most. Because it is the third biggest coin in terms of value, and is used a lot in the Ethereum and Tron networks, we expect this trend to continue.
When we look at ERC-20 transactions from June and July, we can see that the amount of transfers stayed the same even when prices went up for a short time. The price of Ethereum went up from $1,630 to $2,000 between mid-June and mid-July 2023, but it has since gone down.
Despite the ups and downs in price, the on-chain ERC-20 activity has stayed consistent. It is not known if there will be a change in how much people are doing as prices keep going down. However, if prices are lower, people who own the tokens may decide to wait and not do much, leading to less activity.