The long-awaited The Merge on Ethereum took place on September 15 with the change from the PoW (Proof-of-Work) consensus mechanism to a PoS (Proof-of-Stake) mechanism. With this major upgrade, the Ethereum network was able to Significantly reduce grid power consumption in more than 99.9%.
The BonusInsider team decided to analyze the impact of The Merge on the behavior of Ethereum holders and if it affects the number of transactions they make. It was observed that the number of daily transactions decreased by 9% between September 15 and October 31, 2022 (57 million transactions) and the same period of the previous year (52 million). This motivated them to commission a survey to understand more about the online spending behavior of Ethereum holders after The Merge.
Between November 1 and 4, 2022, the team surveyed 1,225 Ethereum users to find out how they spend their coins and how many transactions they send per month. Here are the questions that were asked and the answers they got.
How many Ethereum transactions do you do per month? Source: BonusInsider
The vast majority of Ethereum holders do not actively trade or use their crypto very often, since 72.9% of them send a maximum of 10 transactions per month. A total of 505 people, representing more than 40% of those surveyed, admit to only sending 1-9 Ethereum transactions per month, while nearly 18% say they send 10-19 transactions. Those who make the most transactions, more than 20 per month, are less than 10% of all respondents, or exactly 111 Ethereum holders. Interestingly, 389 of all people, or little more than 30% say they do not send any transactions.
What use do they give to Ethereum? Source: BonusInsider
Holding Ethereum for investment purposes: 389 or 31.8%
Although experts point out that cryptocurrency is not ideal for investment due to its high volatility, many people still hold Ethereum as an investment. This group of people expects to benefit from the price increase after a certain period of time.
Speculate on the Markets: 330 or 26.9%
This group of holders use Ethereum to speculate on the markets and actively trade other cryptocurrencies through it. They speculate on the price movements of other cryptocurrencies or buy and sell the underlying coins. While considered a high-risk activity, cryptocurrency trading is extremely popular with this group of holders.
Pay services and purchases online 223 or 18.2%
Another important use of Ethereum is pay for services or buy products through e-commerce websites. For many people, its usefulness as a real payment method is obvious and many times they prefer to use it to pay for hosting, domain names, different computer services or pay freelancers for their work.
Purchases of NTF 95 or 7.8%
Many of the cryptocurrency advocates use Ethereum for buy NFTs (non-fungible tokens) as they are usually held on the Ethereum blockchain. This can be done through a large marketplace like Coinbase, OpenSea and Binance or in private transactions without the mediation service of online platforms.
Play P2E games (play to win) 78 or 6.4%
The so-called P2E or play to win games have also become very popular in recent years. They use a different model than traditional games where you generally need to pay to play. The concept behind P2E games is simple: players collect cryptocurrencies or NFTs produced in-game based on blockchain. Popular titles at the moment are Calvaria, Silks, Tamadoge, and Axie Infinity.
Gambling and online betting 65 or 5.3%
Another group of Ethereum holders use their cryptocurrencies to make safe and reliable deposits at gambling sites, including online casinos, sports betting and fantasy sports platforms. Some sites specifically cater to cryptocurrency holders, but there are also many traditional online gambling platforms that accept Ether as a form of payment.
Buy items in the metaverse 45 or 3.6%
Many people prefer to use Ethereum to buy tokens on different metaverse platforms and use them to buy virtual land or other goods and services.
The metaverse, an immersive virtual world where anything is theoretically possible, is an exciting concept still being developed by various technology companies. You can access it through a PC or you may need a VR headset or augmented reality glasses.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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