Find out the reason why Ethereum hit a record spike in new address creation, regarding the airdrop of Spark token for XRP holders?
According to crypto reporting analytics provider Santiment, their network growth figures show 117,500 new Ethereum wallet addresses in just one day on Saturday, December 12th. highest in 35 months on December 14 when 177,000 new addresses were added to the network.
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— Santiment (@santimentfeed) December 14, 2020
A snapshot for the Spark airdrop may have caused a record spike in Ethereum address creation
According to Bitinfocharts, the number of active Ethereum addresses also skyrocketed on December 14 to 714,081. However, this number has yet to reach an all-time high during the cryptocurrency boom in January 2018 at 1.1 million addresses.
The reason is actually very simple. First, some argue that the reason for the increase in address creation and address operations in recent months is the increase in DeFi liquidity mining that yields good returns with ETH as an asset. challenge.
Second, the anticipation of staking rewards on the newly launched ETH 2.0 Beacon Chain may have also driven address growth as investors buy ETH to stake on the new blockchain.
The third and most bizarre reason is the involvement of a Spark token airdrop from Flare Networks for XRP holders. Flare is a new protocol that intends to bring decentralized finance to the XRP ecosystem by making it compatible with existing smart contracts with the Ethereum Virtual Machine.
One user said:
“Could be bc of the XRP/Spark/Flare airdrop, which requires an ethereum-compatible address.”
Flare’s native FLR token will be used to collateralize the bond of FXRP, a fully trustless representation of XRP on the network. The airdrop took a snapshot of XRP balances on Dec. 12, which coincided with the Ethereum address creation spike. The Flare address is an Ethereum-compatible address that must be generated within six months of the snapshot date.
While major exchanges such as Coinbase and Binance are supporting airdrops and process automation, exchanges that keep their XRP off a centralized exchange will need to create a Flare address to qualify for the airdrop.
Read more:
- ETH 2.0 Transforms Ethereum Into The Blockchain, But What About ETH The Asset And The Affected On Ethereum Price?
- Ethereum Price Is Expected To Move Up Towards $ 1,200 In The Months Ahead, Marking A 100% Rise From The Current Price