The winds of change swirl ethereum, the second largest cryptocurrency in the world. Despite a recent price drop, the network has seen a surge in new user activity, sparking a wave of optimism. However, the enormous influence of the large holders, known as whales, continues to cast a long shadow.
New wallets open to the public
Data from blockchain analytics firm Santiment reveals an increase in new ethereum wallets, with a record 267,000 created on April 28 and 29. This influx marks the largest two-day increase since October 2022 and suggests a possible resurgence of interest in the ethereum network.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/ethereum?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#ethereum We saw a milestone when April came to an end. 266.6 thousand new wallets were created on April 28 and 29, the highest two-day stretch of network growth since October 8 and 9, 2022. It is a strong point that twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$eth continues to expand despite falling prices. https://t.co/SN6xqc3JXV pic.twitter.com/KDcjhY30y5
– Sentiment (@santimentfeed) twitter.com/santimentfeed/status/1785721881380917254?ref_src=twsrc%5Etfw” rel=”nofollow”>May 1, 2024
This trend defies the current market slowdown, with many cryptocurrencies experiencing significant price drops. Analysts speculate that the increase in new portfolios could be due to several factors, including:
- Anticipation of future growth: Investors may be eyeing upcoming ethereum upgrades that promise greater scalability and security, betting on the network's long-term potential.
- Bargain hunters: The recent price drop could be seen as an attractive entry point for new investors looking for a discount on ethereum.
About minnows and whales
While the number of new users is encouraging, a closer look at ethereum address distribution reveals a stark disparity in holdings. According to CoinMarketCap, a staggering 97% of ethereum addresses have between $0 and $1,000 in assets. cryptocurrency. This means a large group of small-scale investors, often referred to as “minnows.”
However, true power lies in a select few. Whale tracking platform Clank estimates that whales, which represent just 0.10% of all ethereum addresses, control a whopping 41% of the total circulating supply. This translates to an average holding of almost 10 million eth per whale, valued at a staggering $3.7 million.
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Ether market cap currently at $362 billion. Chart: TradingView.com
Standing strong: a vote of confidence?
Despite the recent price drop, ethereum appears to be weathering the storm better than the broader crypto market. In fact, Ether is up over 30% year-to-date (YTD) from an opening price of around $2,282.
As of today, ethereum stands at $3,014, with a total market capitalization of $362 billion. Notably, the market saw an average drop of 8.75% over the past week, highlighting ethereum's relative resilience.
Source: CoinMarketCap
Furthermore, the data suggests that the majority of ethereum investors (74%) are long-term holders, demonstrating a strong belief in the project's future. This hodling mentality indicates a commitment to maintaining your ethereum positions over the long term, even in the face of short-term market fluctuations.
Featured image from Pixabay, TradingView chart
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
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