Ethereum (ETH) Holders Grows by 8.16 Million, Despite the 60% Drawdown

ETH price is making some moves this week as it aims for $2,700. Still, the digital asset hovers in the range of $2,000 and $3,000 after a drawdown of 60%.

The crypto asset is still way off of its all-time high of $4,380; however, despite this, the number of holders continues to grow as they scooped off cheap coins setting a new record of Ether holders.

As of May 30, 58.9 million addresses have a balance in ETH, representing an increase of a whopping 8.16 million year-to-date, as per IntoTheBlock.

As for unique ETH addresses, it has reached a new high of 156 million, up from almost 131 million at the beginning of this year and just over 84 million at the starting of 2020, according to Etherscan.

There is a lot of excitement around Ethereum, thanks to the upcoming EIP- 1559, which will effectively make it a “deflationary” asset by burning the gas fees. Also, the shift to proof of stake (PoS) amidst the ongoing concerns around the energy consumption by proof-of-work (PoW) networks makes it attractive.

Growing development in the scaling solutions such as sidechain project Polygon (MATIC) and layer 2 solutions Arbitrum and Optimism only add to its usage by targeting the reduction of high fees on the network. MATIC -2.60% Polygon / USD MATICUSD $ 1.06
-$0.03-2.60% Volume 400.36 m Change -$0.03 Open $1.06 Circulating 9.08 b Market Cap 9.58 b 1 y StarkWare Proposes to Deploy Aave on its ZK-Rollup L2 StarkNet 1 y The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022 1 y Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum

Not to mention, the rapidly expanding decentralized finance (DeFi) space, with $65 billion in total value locked (TVL) that could be seen as assets under management, which is majorly happening on the second-largest network, is adding to its popularity and usage.

All of this has Ethereum enthusiasts and JPMorgan, Goldman Sachs, billionaire investor Carl Icahn seeing more potential in Ether than Bitcoin, predicting the leading cryptocurrency’s replacement by Ethereum.

Ether “will likely exceed Bitcoin at some point in the future, as Ethereum will be superior when it comes to innovation and developer interest,” said Tegan Kline, co-founder of blockchain software company Edge & Node. But according to her, investors should be allocating capital to both crypto assets. BTC -3.50% Bitcoin / USD BTCUSD $ 26,910.67
-$941.87-3.50% Volume 19.64 b Change -$941.87 Open $26,910.67 Circulating 19.33 m Market Cap 520.2 b 1 y SEC Commissioner says NFTs Might Fall Within Their Jurisdiction, Gensler Hires Senate Aid for Crypto Policy 1 y A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 1 y Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum

Crypto is the most free market, almost everything is allowed, moats are shallow and barbarians permanently at the gates. Cries for permanent 1st position go mostly from people who want to have it easy (if only I could just passively hold one asset that would solve everything) https://t.co/eQzV9kO8Bf

— 🃏Fiskantes 1(Ω, 三)7 (@Fiskantes) May 31, 2021

However, not everyone thinks in the same line as crypto investor @bitcoinpanda69 points out, “they're just different assets completely.”

While Bitcoin is “an ultra-secure, censorship-resistant store of value and it is unrivaled at doing that thing,” Eth “is the world computer.”