In 2024, Nansen highlights that ETH holders are leaning towards Layer 2 solutions as opposed to conventional chains.

Blockchain Analytics platform Nansen The recent report released is titled “ ETH: A Cross Chain Cohort Analysis ” provides an analysis of ETH From 2023 onwards, holders have been categorized into various groups based on their holdings.

The detailed report led by senior research analyst Jake Kennis explores the various behaviors of ETH holders and offers essential insights for those involved in the cryptocurrency sector. It aims to shed light on issues such as the accumulation of ETH by large holders, the preferences for different chains among various ETH groups, and the primary platforms utilized by these holders.

According to Jake Kennis, senior research analyst at Nansen, the cross-chain investigation analyzed the ETH balances of everyday blockchain users, referred to as Externally Owned Accounts (EOAs). The team at Nansen applied specific labels and filters to exclude contracts, MEV bots, and entities like centralized and decentralized exchanges, which refined the results to identify genuine EOAs.

The findings reveal that a significant 69% of daily interactions by users on Ethereum and its Layer 2 solutions are related to decentralized finance (DeFi) protocols. This suggests that DeFi remains a primary focus and a crucial gateway for new users joining the ecosystem. DeFi Jake Kennis from Nansen emphasized that a unique aspect of their analysis is its cross-chain approach, allowing for a thorough evaluation of ETH holdings across multiple platforms like Ethereum, Arbitrum, Optimism, Polygon, Base, and Linea.

This methodology, along with the filtering of EOAs and analysis of counterparties, yielded actionable insights by minimizing non-user-related data and revealing the behaviors of various ETH holder demographics.

The report indicates that both smaller addresses with under 1,000 ETH and larger whales are increasingly shifting their activities to Layer 2 solutions rather than the main Ethereum network. Interestingly, those with less than 1,000 ETH noted the most significant uptick in Layer 2 engagement, while the 1,000+ ETH group also experienced growth, although they continue to perform most of their transactions on the Ethereum mainnet,” Kennis noted.

“The main key takeaway is that small ETH holders Nansen Research Highlights Increasing Move Towards Scalability

There is a significant trend among ETH holders favoring Layer 2 solutions, as daily activity increasingly reflects this shift. 'The growing preference for Layer 2 solutions is evident, with a notable rise since 2023 continuing firmly into 2024,' stated Jake Kennis from Nansen in an interview.

The report highlights USDC and other significant entities identified by ETH holders, underscoring their relevance in the ETH ecosystem. This critical analysis of key players can greatly influence investment tactics and market movements in the crypto world. Layer 2 According to Jake Kennis from Nansen, the insights from their research have substantial implications for ETH holders, crypto investors, and the wider market. The report’s detailed overview of wallets and their activities grants stakeholders valuable insights into authentic user behavior, the progression of chain preferences, and the ability to make strategic decisions in a fast-paced cryptocurrency environment.

Furthermore, the report identifies Uniswap , Tether Keep in mind that the information on this page should not be considered as legal, investment, financial, or any other professional advice. It's crucial only to invest what you can afford to lose and to consult with a financial advisor if you're uncertain. For further guidance, we recommend reviewing the issuer or advertiser's terms, conditions, and help resources. MetaversePost strives to provide precise and impartial reporting, but please note that market conditions may change unexpectedly.

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