Wallet Address Holding More than One ETH Hits Near Month Low: What Does It Mean?

According to reports, according to Glassnode Alerts data, the number of wallet addresses holding more than one ETH has hit a near month low of 1739804.

Data: The number of wallet addresses holding more than one ETH has hit a low point in nearly a month

Introduction

The world of cryptocurrencies has been evolving rapidly, and Ethereum has emerged as one of the most popular assets in the crypto space. As of August 2021, the total market cap of Ethereum is around $410 billion, making it the second-largest crypto by market capitalization. Ethereum is famous for its smart contracts, decentralized applications, and tokenization. The Glassnode Alerts data has revealed that the number of wallet addresses holding more than one ETH has hit a near month low of 1739804. This data has created a buzz in the crypto community, and investors are wondering if they should worry about it. In this article, we will explore the possible reasons behind this trend and what it means for the future of Ethereum.

What are Wallet Addresses Holding More than One ETH?

Wallet addresses holding more than one ETH refer to the holders who possess more than one Ethereum token. Ethereum offers the possibility to tokenize assets, and smart contracts enable the creation of various tokens on top of its blockchain. Therefore, Ethereum wallet addresses can hold not only ETH but also other tokens created on its platform, such as stablecoins, utility tokens, etc. Moreover, users can create as many wallet addresses as they want, but these addresses don’t necessarily belong to different people since one person can have multiple wallets.

Why Has the Number of Wallet Addresses Holding More than One ETH Decreased?

There are several possible explanations for the decline in the number of wallet addresses holding more than one ETH.

Market Correction

The crypto market has witnessed a massive bull run since the beginning of 2021. Ethereum has also benefited from this rally, with its price increasing from $730 on January 1, 2021, to $2748 on May 12, 2021. However, the market experienced a sharp correction in May and June, and Ethereum’s price dropped to around $1700. Some investors may have sold their tokens during this period, resulting in a decrease in the number of wallet addresses holding more than one ETH.

DeFi Seasonalities

Decentralized Finance (DeFi) has been one of the most significant use cases of Ethereum. However, DeFi protocols offer high yields, but they are also highly risky. Some DeFi protocols have experienced hack attacks or have inconsistent yields, causing investors to withdraw their funds. Therefore, some investors may have sold their ETH or other tokens created on Ethereum during DeFi seasonalities, resulting in a decrease in the number of wallet addresses holding more than one ETH.

Increase in Retail Adoption

Ethereum has gained significant mainstream adoption in recent years, and more people are buying cryptocurrencies. However, most users are retail investors who don’t hold large amounts of ETH. Therefore, an increase in retail adoption may lower the number of wallet addresses holding more than one ETH.

What Does It Mean for Ethereum?

The decrease in the number of wallet addresses holding more than one ETH could be an indicator of the following:

Long-Term Holders

The decrease in the number of wallet addresses holding more than one ETH could indicate that long-term holders are accumulating more ETH. These holders may have transferred their ETH to cold wallets, which are not included in this statistic.

Short-Term Holders

On the other hand, the decrease in the number of wallet addresses holding more than one ETH could also indicate that short-term holders are losing interest in Ethereum. These holders may have sold their ETH and left the platform.

Conclusion

The Glassnode Alerts data has revealed that the number of wallet addresses holding more than one ETH has hit a near month low of 1739804. Several possible explanations could explain this trend, such as market correction, DeFi seasonalities, and increase in retail adoption. However, the decrease in the number of wallet addresses holding more than one ETH could be an indicator of long-term holders accumulating more ETH or short-term holders losing interest in Ethereum. Investors should take this data into account before making any investing decisions.

FAQs

Q: What is Ethereum?
A: Ethereum is a decentralized blockchain platform that allows developers to build and deploy smart contracts and decentralized applications.
Q: What are wallet addresses holding more than one ETH?
A: Wallet addresses holding more than one ETH refers to the holders who possess more than one Ethereum token.
Q: Why has the number of wallet addresses holding more than one ETH decreased?
A: There could be several possible explanations for this trend, such as market correction, DeFi seasonalities, and increase in retail adoption.