Ethereum is defying the current market downturn as it experiences a surge in new wallets, reaching a record high since October 2022. On April 28 and 29, approximately 267,000 new Ethereum wallets were created, indicating a strong expansion of the network. This growth is taking place despite the recent decline in Ethereum’s price.
The growing interest in Ethereum can be attributed to various factors, including ongoing improvements in scalability and security through upgrades. These developments have attracted a diverse range of users, even amidst economic uncertainties and volatile market conditions.
An analysis by CoinMarketCap reveals that the distribution of Ethereum across different addresses is uneven. The 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, while a mere 0.10% of addresses hold over $100,000 in Ethereum. This data suggests that most users have relatively small balances, with only a few holding significant amounts.
Despite their limited numbers, Ethereum whales, who are large holders of the cryptocurrency, exert significant influence over the market. These whales control around 40.75% of Ethereum’s total circulating supply, according to data from Clank. Their average holdings amount to 9,839,698 ETH, valued at $3.66 million. This substantial influence is evident in transactions like the recent internal transfer of over $45 million worth of Ethereum within Binance.
The holding patterns among Ethereum investors vary widely. The latest data shows that 74.43% of addresses are long-term holders, indicating a strong belief in Ethereum’s future value. Medium-term holders, or “Cruisers,” make up 21.31% of addresses, while only 4.26% are classified as “Traders” who hold their positions for shorter durations.
Despite experiencing a 3.80% price decline over the past week, Ethereum is still performing relatively well compared to the broader cryptocurrency market, which saw an average decline of 8.80%. Currently, the price of ETH stands at $2,992, with a total market capitalization of $355.6 billion.
It is important to note that the information provided in this article is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic will not be held responsible for any financial losses incurred.