In spite of the ongoing decline in price, Ethereum has experienced a surge in new wallet growth, setting a record with 267,000 new addresses created on April 28 and 29. This is the highest increase in a two-day period since October 2022, indicating a strong expansion of the Ethereum network. This growth is occurring at a time when the overall market is experiencing a downturn.
Despite the economic uncertainties and fluctuating market conditions, Ethereum continues to attract a diverse range of users. The increase in new wallets can be attributed to ongoing developments in scalability and security, brought about by continuous upgrades to the Ethereum platform.
An analysis conducted by CoinMarketCap reveals that Ethereum is unevenly distributed across different addresses. 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 the remaining 0.10% of addresses hold over $100,000 in Ethereum. This data suggests that while a few users possess large amounts of Ethereum, the majority hold relatively small balances.
Whales, or large holders, play a significant role in Ethereum’s market dynamics as they control about 40.75% of the total circulating supply. This substantial influence is evident in their average holdings of 9,839,698 ETH, valued at $3.66 million. Whale transactions, such as the recent internal transfer of over $45 million worth of Ethereum on Binance, can have a significant impact on price movements.
The holding patterns among Ethereum investors vary greatly. The majority, 74.43%, are long-term holders, indicating a strong belief in the future value of Ethereum. Medium-term holders, or “Cruisers,” make up 21.31% of Ethereum addresses, while only a small percentage, 4.26%, are classified as “Traders” who hold their positions for shorter durations.
Despite a 3.80% decline in price over the past week, Ethereum is 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.
Disclaimer: This article provides informational content 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 thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.