Is Ethereum Back? Record 267,000 New Users Spark Speculation

Christian Encila

1 year ago

3 mins read

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Ethereum, the second-largest cryptocurrency in the world, is surrounded in whirl by changing winds. Though prices have since dropped, the network has seen an increase in new user activity, which is encouraging. Still, the disproportionate impact of big holders—also known as whales—keeps a long shadow over things.

New Wallets Open For Business

According to data from blockchain analytics company Santiment, new Ethereum wallets are rising; record-breaking 265,000 were generated on April 28 and 29th. The greatest two-day rise since October 2022 this flood indicates a possible Ethereum network comeback of interest.

📈 #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

With numerous cryptocurrencies seeing notable price declines, this trend buckles against the present market collapse. Analyzes suggest that numerous elements could be driving the growth in new wallets, including:

Anticipation of future growth: Investors may be looking towards upcoming Ethereum upgrades that promise improved scalability and security, betting on the network’s long-term potential.
Bargain hunters: The recent price dip might be seen as an attractive entry point for new investors seeking a discount on Ethereum.

On Minnows And Whales

Although the total number of new users is encouraging, a closer inspection of Ethereum’s address distribution exposes a clear difference in ownership. Out of all the Ethereum addresses, shockingly 97% have between $0 and $1,000 worth of the coin, according to CoinMarketCap This points to a sizable pool of small-scale investors sometimes known as “minnows.”

Still, the actual power resides in a small number of people. Representing only 0.10% of all Ethereum addresses, whale tracking platform Clank claims that whales hold a shockingly 41% of the overall circulating supply. This results in an average holding of around 10 million ETH per whale, worth a shockingly $3.7 million.

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

Holding Steady: A Vote Of Confidence?

Ethereum seems to be surviving the storm better than the larger crypto market, albeit the recent price drop. Actually, Ether is up more than thirty percent year-to- date (YTD) from an opening price of roughly $2,282.

Ethereum currently stands at $3,014 with a $362 billion overall market value. Especially, the market dropped average by 8.75% during the past week, which shows Ethereum’s relative resilience.

Source: CoinMarketCap

Moreover, statistics show that most Ethereum investors (74%), are long-term holders, indicating a significant conviction on the future of the project. This “hodling” attitude shows a dedication to keep their Ethereum assets over the long run—even in the face of transient market swings.

Featured image from Pixabay, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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