Both Bitcoin and Ethereum are significantly down from their all-time highs, but still, they are continuing to gain the attention of smaller holders. This can be witnessed in the total number of BTC and ETH addresses in terms of relatively small holdings that have been on a rise throughout this year.
As revealed in the data, the total number of Bitcoin (BTC) addresses holding between 0.001 and 0.1 BTC has surged by approximately around 15% so far this year. However, it should be noted that by the end of the month of April of this year, the number of addresses was flat.
Talking further about the Ethereum (ETH) addresses that hold between 0.01 to 1 ETH, they are approximately 58% up year-to-date, dissimilar to Bitcoin, continued to gradually surge throughout the summer as well, and the credit goes to the raging NFT summer.
One of the leading cryptocurrency data aggregators noted in its statement regarding the surging retail interest:
“It is possible that retail interest in NFTs is helping Ethereum adopt new users.”
In addition to this, the surging number of Ethereum locked in decentralized finance and ETH 2.0 along with being moved out of circulation through burns, are contributing to attracting the interest of retail investors.
The top five smart contracts that are responsible for burning the most Ethereum are Axie Infinity’s Bridge Contract, Uniswap v2, OpenSea, Uniswap, and Tether.
OpenSea alone is reportedly responsible for more than 12k Ethereum burned so far followed by Uniswap, which burned 6,300 Ethereum, which is a notable margin.
Messari Inc. notes:
“Most Ethereum gas spikes also happen due to NFT minting or PFP launches. This leaves little doubt that the current NFT / Gaming cultural hype cycle contributes heavily to ETH burns”
Moreover, the percentage of dealings on Ethereum using the EIP-1559 fee mechanism has also been increasing as service providers are catching up in the support of the new format.