Despite the ongoing price dip, Ethereum sees record wallet growth with 267K new addresses on April 28 and 29, the highest since October 2022.
Ethereum has witnessed a significant spike in new wallets hosted on the network, marking a notable resurgence in interest amidst a general market downturn.
According to data shared by Santiment, a blockchain analytics firm, nearly 267,000 new Ethereum wallets were set up on April 28 and 29. This is the largest two-day increase observed since early October 2022, suggesting a robust expansion of the Ethereum network. This growth occurs in contrast to Ethereum’s recent price dip.
📈 #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
Despite the economic uncertainties and fluctuating market conditions, Ethereum continues to attract a diverse array of users. This surge in new wallets could potentially be linked to ongoing developments, such as improvements in scalability and security through its continued upgrades.
Another analysis by CoinMarketCap reveals an uneven spread of Ethereum across different addresses. The vast majority of Ethereum addresses, approximately 97.49%, hold between $0 and $1,000 worth of the cryptocurrency.
Only a small fraction, 2.40%, hold between $1,000 and $100,000, with the remaining 0.10% of addresses holding over $100,000 in Ethereum. This data indicates that while a few hold large amounts of Ethereum, most users possess relatively small balances.
Whale Movements and Influence
Despite their limited numbers, Ethereum whales control a substantial portion of the total holdings. According to data from Clank, a whale tracking platform, whales hold about 40.75% of Ethereum’s total circulating supply. These large holders play a role in Ethereum’s market dynamics, capable of influencing price movements significantly.
Clank’s data further shows that the average holdings of these whales amount to 9,839,698 ETH, valued at $3.66 million. This sizable influence is also evident in the “Whale of the Day” transaction within Binance, where an internal transfer of over $45 million worth of Ethereum occurred.
Holding Patterns Among Ethereum Investors
The holding time for Ethereum varies significantly among different addresses. According to the latest data, a large majority, 74.43%, are long-term holders, which reflects a strong confidence in the potential future value of Ethereum.
Medium-term holders, or “Cruisers,” make up 21.31%, while only a small percentage, 4.26%, are classified as “Traders” who hold their positions for shorter durations.
Despite a price decline of 3.80% over the last week, Ethereum is still performing relatively well compared to the broader cryptocurrency market, which saw an average decline of 8.80%. As of today, the price of ETH stands at $2,992, with a total market capitalization of $355.6 billion.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
