Is Ethereum Back? Record 267,000 new users sparks speculation

The winds of change are swirling Ethereum, the second largest cryptocurrency in the world. Despite a recent price drop, the network has seen an increase in new user activity, sparking a wave of optimism. However, the outsized influence of large holders, known as whales, continues to cast a long shadow.

New wallets open for business

Data from blockchain analytics firm Santiment reveals a surge in the number of new Ethereum wallets, with a record 267,000 created on April 28-29. This influx marks the largest two-day increase since October 2022 and suggests a potential renewed interest in the Ethereum network.

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This trend defies the current market downturn, with many cryptocurrencies experiencing significant price drops. Analysts believe the increase in new wallets could be fueled by several factors, including:

• Anticipation of future growth: Investors could look to upcoming Ethereum upgrades that promise improved 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.

On minnows and whales

While the number of new users is encouraging, a closer look at Ethereum’s address distribution reveals a stark disparity in holdings. According to CoinMarketCap, 97% of Ethereum addresses hold between $0 and $1,000 in assets. cryptocurrency. This means a large pool of small investors, often called “minnows.”

However, the real power lies with a select few. Whale tracking platform Clank estimates that whales, which represent just 0.10% of all Ethereum addresses, control 41% of the total circulating supply. This translates to an average holding of nearly 10 million ETH per whale, valued at a staggering $3.7 million.

Ether market cap currently at $362 billion. Chart: TradingView.com

Holding on: 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.

Currently, Ethereum stands at $3,014, with a total market cap of $362 billion. Notably, the market has seen an average decline of 8.75% over the past week, highlighting the relative resilience of Ethereum.

Source: CoinMarketCap

Additionally, data suggests that a majority of Ethereum investors (74%) are long-term holders, demonstrating strong confidence in the project’s future. This Hodling mentality indicates a commitment to maintaining their Ethereum positions over the long term, even in the face of short-term market fluctuations.

Featured image from Pixabay, chart from TradingView

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