Ethereum, the second-largest cryptocurrency in the world, is surrounded in whirl by changing winds. Though prices have since dropped, the network has seen an increase in new user activity, which is encouraging. Still, the disproportionate impact of big holders—also known as whales—keeps a long shadow over things.
New Wallets Open For Business
According to data from blockchain analytics company Santiment, new Ethereum wallets are rising; record-breaking 265,000 were generated on April 28 and 29th. The greatest two-day rise since October 2022 this flood indicates a possible Ethereum network comeback of interest.
📈 #Ethereum saw a milestone as April came to an end. 266.6K new wallets were created on April 28th and 29th, the highest 2-day stretch of network growth since October 8th and 9th, 2022. It is a strong that $ETH continues expanding despite dipping prices. https://t.co/SN6xqc3JXV pic.twitter.com/KDcjhY30y5
— Santiment (@santimentfeed) May 1, 2024
With numerous cryptocurrencies seeing notable price declines, this trend buckles against the present market collapse. Analyzes suggest that numerous elements could be driving the growth in new wallets, including:
- Anticipation of future growth: Investors may be looking towards upcoming Ethereum upgrades that promise improved scalability and security, betting on the network’s long-term potential.
- Bargain hunters: The recent price dip might be seen as an attractive entry point for new investors seeking a discount on Ethereum.
On Minnows And Whales
Although the total number of new users is encouraging, a closer inspection of Ethereum’s address distribution exposes a clear difference in ownership. Out of all the Ethereum addresses, shockingly 97% have between $0 and $1,000 worth of the coin, according to CoinMarketCap This points to a sizable pool of small-scale investors sometimes known as “minnows.”
Still, the actual power resides in a small number of people. Representing only 0.10% of all Ethereum addresses, whale tracking platform Clank claims that whales hold a shockingly 41% of the overall circulating supply. This results in an average holding of around 10 million ETH per whale, worth a shockingly $3.7 million.
Ether market cap currently at $362 billion. Chart: TradingView.com
Holding Steady: A Vote Of Confidence?
Ethereum seems to be surviving the storm better than the larger crypto market, albeit the recent price drop. Actually, Ether is up more than thirty percent year-to- date (YTD) from an opening price of roughly $2,282.
Ethereum currently stands at $3,014 with a $362 billion overall market value. Especially, the market dropped average by 8.75% during the past week, which shows Ethereum’s relative resilience.
Source: CoinMarketCap
Moreover, statistics show that most Ethereum investors (74%), are long-term holders, indicating a significant conviction on the future of the project. This “hodling” attitude shows a dedication to keep their Ethereum assets over the long run—even in the face of transient market swings.
Featured image from Pixabay, chart from TradingView