Here’s why Ethereum’s “hodlers” could ultimately fuel an explosive uptrend 🚨 This article is 5 years old...
Here’s why Ethereum’s “hodlers” could ultimately fuel an explosive uptrend
2 min read
Updated: May. 1, 2020 at 10:35 pm UTC
Photo by Daniel Jensen on Unsplash
Ethereum has seen notable volatility in recent times, primarily stemming from that seen by Bitcoin and many of its other peers.
This has allowed the ETH to rally to fresh post-February highs of $230 overnight, although its push up to this level proved to be highly unsustainable and resulted in it declining back into the lower-$200 region.
Fundamental analysis of Ethereum’s on-chain data seems to suggest that this uptrend may ultimately prove to be stable and sustainable, as the cryptocurrency’s primary investor base are showing signs of “strong hodling behavior.”
This also coincides with only a slight uptick in on-chain network activity from investors, signaling that most are waiting for significantly higher prices before they offload their tokens.
Ethereum volatility ramps up, but investors remain unfazed
Ethereum’s price saw a notable upswing over the past couple of days that has allowed it to climb from lows of $198 to highs of $230.
The visit to these highs was short-lived, however, as the rejection seen here led ETH to erase a good portion of the gains incurred during its latest explosive movement.
Ethereum has now been able to find some stability around its current price of $210, although it is underperforming Bitcoin by nearly 6 percent at the time of writing.
This volatility hasn’t triggered quite as much activity amongst investors as one would expect, as data from the research platform IntoTheBlock shows that only one percent of the crypto’s total wallet addresses conducted any transactions throughout the past 30 days.
They revealed this data in a recent tweet, saying:
“How active is the Ethereum network? Ethereum has 37.73 million addresses with a balance in ETH – Of those addresses with a balance, 1.01% on average had a transaction during the last 30 days – During the last 7-days, the number of active addresses in a day increased by 9.5%”
ETH investors continue “hodling” strong
Further data from analytics firm Glassnode shows that Ethereum investors have been expressing “strong hodling behavior” over a long-time frame, signaling that the majority of ETH’s investors are looking to hold their tokens until it reaches a significantly higher price down the line.
“ETH investors are showing strong hodling behaviour: – 77.7% of the supply hasn’t moved in 6 months – 57.6% hasn’t moved in a year – 31.6% hasn’t moved in 2 years (EOAs only, smart contracts excluded)”
If this trend continues strong and the majority of Ethereum’s investor base doesn’t offload their crypto during future upswings, this could signal that its next mid-term uptrend will prove to be both strong and highly sustainable.
Bitcoin Market Data
At the time of press 10:35 pm UTC on May. 1, 2020, Bitcoin is ranked #1 by market cap and the price is down 0.32% over the past 24 hours. Bitcoin has a market capitalization of $161.24 billion with a 24-hour trading volume of $44.98 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of press 10:35 pm UTC on May. 1, 2020, the total crypto market is valued at at $246.7 billion with a 24-hour volume of $155.27 billion. Bitcoin dominance is currently at 65.38%. Learn more about the crypto market ›
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In this article
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
IntoTheBlock
IntoTheBlock is a data science company applying cutting-edge research in AI to deliver actionable intelligence for the crypto market.
Glassnode
Glassnode brings data intelligence to the blockchain and cryptocurrency space.