On-chain data shows that ethereum has significantly outperformed bitcoin in terms of adoption over the past three months, a sign that could be positive for eth.
The number of ethereum holders has increased by 3.3% in the last three months
According to data from the on-chain analysis firm x.com/santimentfeed/status/1831000913458405570″ target=”_blank” rel=”noopener nofollow”>Holyethereum has continued to differentiate itself from bitcoin in its growth in the total number of holders. The total number of holders here refers to an indicator that, as the name suggests, tracks the total number of addresses on a given network that have a non-zero balance.
When the value of this metric increases, it means that new addresses with balances are appearing on the blockchain. This trend can arise when new investors join the market and old ones who had previously sold reinvest.
The indicator also registers an increase when existing investors split their holdings across multiple portfolios, perhaps as a privacy measure. Overall, all three factors are in play whenever the metric increases, so it can be assumed that some net adoption is taking place, which may be bullish for the asset.
On the other hand, the falling indicator implies that some holders have decided to empty their wallets, potentially moving away from cryptocurrency altogether, at least in the short term.
Now, here is a chart showing the trend in the total number of holders of the three major coins in the sector, bitcoin (btc), ethereum (eth) and Tether (USDT), over the past few years:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/09/Ethereum-Soars-With-33-User-Growth-While-Bitcoin-Stagnates.jpeg" alt="Total number of bitcoin and ethereum holders” width=”2632″ height=”1792″/>
Looks like the value of the metric has been on the way up for eth | Source: x.com/santimentfeed/status/1831000913458405570/photo/1" target="_blank" rel="noopener nofollow">Santiment on x
As shown in the chart above, the total number of ethereum holders has been on an upward trend for the past few years, and this momentum continues over the past three months as 4 million more holders have appeared on the network.
Unlike eth’s growth, btc has seen its total number of holders show almost a sideways trajectory since 2021. Over the past three months, the number one cryptocurrency has seen an absolute decline in its user base, with 50,000 addresses emptying out.
Following the latest surge, ethereum now has almost 127 million holders, while the metric stands at just 54 million for bitcoin, meaning the latter doesn’t even have half as many holders as the former.
The number one stablecoin, USDT, currently has 6 million addresses holding a balance, which is an increase of around 230,000 compared to three months ago.
The trend of the total number of btc holders would imply that the coin may have hit a hurdle in its adoption, while eth has continued to attract new users, likely due to the rich ecosystem it hosts.
eth Price
At the time of writing, ethereum is hovering around $2,400, down more than 4% in the past 24 hours.
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The price of the coin appears to have seen a sharp drawdown | Source: ETHUSD on TradingView
Featured image by Dall-E, Santiment.net, chart by TradingView.com
