Ethereum Miners Busy Hoarding ETH at Record Levels But Exchange In-flows also on Rise
Bitcoin is surging and so are altcoins. The second-largest network is also enjoying a spike of 7.34% as Ether moves above $200. When it comes to YTD gains, Ether which recorded 60% gains is outperforming BTC which is up only 13.18%. Much of these gains, over 58% have been made in April.
This price increase has the number of Ethereum addresses in profit increased to 40%, the highest percentage number since early March.
As the price of #Ethereum climbs to $190, the number of addresses In the Money increases to 40%. This % is the highest number since March 7 and means that if those addresses were to sell today at the current price of 192, they would make a profit.#ETH #crypto #blockchain #btc pic.twitter.com/Fm1OJke3FR
— intotheblock (@intotheblock) April 27, 2020
Interestingly, roughly 17% of Ether supply 16.6 million ETH is held by 10 addresses while the top 10,000 addresses hold 91.7 million ETH. The top 1k addresses represent 70.7M ETH and 37.8M ETH are held by the top 100 addresses.
On removing the smart contracts, the distribution of ether supply shows the top 10,000 addresses hold 56.7% (over 57 million) of ETH in comparison to 57.44% of Bitcoin supply holding 10.54M BTC.
Only 16 of XRP addresses hold over 55% of XRP supply while 300 of Litecoin addresses hold 54.3% of its supply and 55.8% of BCH supply is held by 1100 addresses.
Meanwhile, the top 100 has 26.4 million ETH and the top 1,000 42.5 million ETH, analyzed venture capitalist Adam Cochran.
Interestingly, March was a record-breaking month for Ethereum as almost 2 million smart contracts were deployed on the Ethereum network.
Busy Accumulating Ether
Cochran who recently wrote about how ETH 2.0 could be “the largest economic shift in society,” has found another reason to be bullish on Ether based on top 10,000 Ethereum addresses.
The venture capitalist comes up with 44.6M ETH with roughly 9% of ETH inaccessible, there is 100 million ETH in circulation that is in a position to enter into staking after removing 80% of cold exchange funds and burned, lost, and locked ETH. And ETH 2.0 will likely initially return 12%-17%+.
Whales are reportedly also busy accumulating, existing whales increased their position by 4% in the past 6 months, and during this period, new whales bought over $650 million.
“We were also able to identify wallets associated with major players such as JPMorgan Chase, Reddit, IBM, Microsoft, Amazon, and Walmart,” and all of them are accumulating ETH, he said.
Miners are also busy hoarding, they accumulated 1.15 million in the past 6 months. Cochran said,
“We’ve never seen such a rapid increase in miner hoarding on ETH. Ever.”
“It seems likely that as we edge closer to Phase0 roll out, ETH miners are getting ready to convert mining operations into staking operations.”
While miners are looking bullish on Ether’s future, DeFi has plenty for a room to grow as well with the majority of $800 million locked in DeFi coming from individual micro-accounts.
However, exchanges’ Ether deposits grew by 5x in the past 6 months. It is the leading early indicator of mass sell-off but this time, the price rose, unlike the last three times when Ether price fell over 40% in the one-month span of the deposits increasing by 4-5x, so that’s a point of concern for now.