- Stable and undisrupted accumulation over the last three months suggest high confidence levels in the project among the majority of miners
- Only 39.6% on Jan. 31st, 2020, of all ETH versus 54.6% from Jan. 1st 2019 moved within the last year
The ETH holdings of miners are poised to break the all-time high.
The last three months across the entire Ethereum miner ecosystem experienced stable and undisrupted accumulation. This resulted in the cumulative balance of all ETH mining pools now hovering at an all-time high of 1.69 million ETH (currently worth around $322 million), according to crypto data platform Santiment.
“These periods of accumulation tend to suggest high confidence levels in the project among the majority block creators, at the very least relative to the current market conditions,” said Maksim Balashevich, founder of Santiment.
On the one hand, these suggest high confidence levels among the Ethereum miners while on the other hand, major miner sell-offs have been often followed by quick and significant price corrections.
Balashevich points out that the last time the network’s miners held on to this much of ETH was in late October 2019 when a drop in ETH price below $170 promoted some of these miners to offload their ETH stash. Balashevich said,
“Barring major market volatility this time around, we’re likely to breach this milestone within the next few days.”
Share of Active ETH Coins Decreasing
Meanwhile, Ethereum’s coins are aging “gracefully.” A new method of measurement, Mean coin age is a way to observe a network’s behavior in total. Here for each coin, it is calculated how long it stayed in its current address.
The current view of Ethereum's Mean Age, Balashevich said highlights a year-long period of relative token inactivity. There has also been a declining share of ETH tokens being moved within the last one year.
On Jan. 1st, 2019, 54.6% of all ETH in existence were active within the past year while at the end of Jan. 2020, this number dropped to 39.6%. This he explained highlights the same trend that
“old coins remain relatively unutilized, and the share of active coins continues to decrease. With the explosive growth of ‘ETH locking’ mechanisms and DeFi solutions, this is likely to become the norm in years to come.”
Exchange wallets added 40.9% ETH to their holdings
When it comes to network activity, Ethereum had a slow start to the year. Over the last 30 days, the network added 1,184,476, a decrease of 9.5% compared to Jan. 2018.
Apart from the downturn in price, the same can be seen in network growth relative to 2019 as in the last 30 days, 5,801,553 ETH addresses interacted with the network, seeing a reduction of 14.1%. However, it isn’t a cause of concern as the same growth pattern has been seen several times in the past.
While the addresses holding <0.001 ETH (+24.7%), 0.001-0.01 ETH (10.3%), 0.01 – 0.1 ETH (6.1%), and those having 0.1-1 ETH (+1.4%) all saw growth — continuing to accumulate ETH — the same can’t be said for high ETH holders. Addresses holding 1000-10000 ETH (-0.02%), 10k-100k ETH ( -1.24%), and 100k-1m ETH ( -5.06%) all saw a drop.
However, the largest ones, addresses holding 1 million to 10 million ETH, which are mostly made up of exchange wallets, added 40.9% to their cumulative holdings, a total of 3.1 million ETH.