Ethereum is facing an exciting time. The change from Proof-of-Work (PoW) to Proof-of-Stake (PoS) will still take some time. With Ethereum 2.0, it will be possible for all users who own more than 32 ETH to stake them in order to secure the network and receive a reward. This could be one of the possible reasons why the number of Ethereum wallets containing ETH has already reached the 40 million mark
40 million Ethereum Wallets hold ETH
Glassnode, which is known for its excellent analysis of on-chain data from Bitcoin, Ethereum and Co., has now stated in a tweet that the number of Ethereum addresses held by ETH has increased by 350% compared to the beginning of 2018, when the ETH share price reached its all-time high.
Ethereum share price is 85% behind its all-time high
In December 2017 the Bitcoin bubble burst, but for Ethereum and many other Altcoins the peak had not yet been reached at that time. In mid-January 2018, the ETH share price reached its previous all-time high of about USD 1,365. This sharp rise in price was also driven by the wave of ICOs, who attracted attention with „promising“ ideas. In most cases, interested parties only had the opportunity to invest directly with ETH. Therefore, the demand for Ethereum increased massively at this time.
Currently, Ethereum is about 85% behind its previous all-time high. So if you bought ETH at 1,365 USD, you now only have 15% of your investment left. The fundamentals speak a positive language but now we see more than clearly that the old all-time high was not driven by good fundamentals but only by pure FOMO on fast profits from ICOs.
It remains to be seen how the update to Ethereum 2.0 will affect the price and fundamentals.
Address flippening with Bitcoin?
Compared to Bitcoin, Ethereum currently has much fewer active addresses. According to Glassnode, BTC has three times as many active addresses as ETH.
The number of whales, meaning owners of a large amount of BTC, continues to increase and reaches new highs again and again, which reminds us of the previous accumulation period in 2016. The same growth pattern can be observed with smaller owners. This was especially the case with the third Bitcoin Halving a few weeks ago. Many new investors have become aware of BTC as a result.
However, Ethereum tends to outperform Bitcoin in non-empty addresses. One of the reasons could be the Stablecoin Tether (USDT), which runs as an ERC20 token through the Ethereum blockchain. More than 20% of all gas fees in the ETH network are currently used for USDT transfer.
The demand for Stablecoins has exploded this year. This has also increased the number of Ethereum wallets that ETH holds. For a transaction on the ETH network, regardless of whether ETH itself or an ERC20 token, a transaction fee in the form of ETH must be paid.