Ethereum
Ethereum defies market laws and attracts crowds
2:10 p.m. ▪ 3 min reading ▪ by Fénelon L.
The Ethereum network saw a record influx of new users in late April, despite a crypto bear market. This newfound momentum gives hope, but the influence of the “whales” raises questions.
The rush to Ethereum
According to Santiment, a company specializing in blockchain analysis, April 28 and 29 saw the creation of 266,600 new Ethereum wallets, a record since October 2022. This surge contrasts with the general gloom of the market. crypto market.
Several factors explains this renewed interest:
- Anticipation of upcoming network updates, aimed at improving its performance and security.
- The recent drop in prices, seen as a buying opportunity by investors looking for bargains.
However, behind this improvement lies a more nuanced reality. According to CoinMarketCap, 97% of Ethereum addresses hold less than $1,000 in crypto, while a handful of “whales” concentrate 41% of the circulating supply, according to Clank, a whale tracking platform.
On average, each whale owns nearly 10 million ETH, the equivalent of $3.7 million, giving them considerable influence over the network.
ETH remains strong despite the storm
Despite concerns related to the concentration of capital, Ethereum has shown resilience. Its price has increased by 30% since the start of the year, while the general crypto market has fallen by 8.75% in one week. Currently, ETH is trading at $2,971.73 with a total market cap of $352 billion.
This relative stability reflects investor confidence. According to available data, 74% of Ethereum holders bet for the long term and maintain their positions despite the Market Volatility. This “HODLing” (Hold On for Dear Life) mentality illustrates their belief in the future potential of the project.
The massive arrival of new users on the Ethereum Network generates optimism, fueled by anticipation of future improvements and investment opportunities due to the recent price decline. However, the concentration of operations in the hands of a few “whales” remains a matter of concern for the community. Time will tell if Ethereum can maintain this positive momentum and further democratize its ecosystem.
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Fenelon L.
Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.