Ethereum Maintains Commanding Lead in Bitcoin’s Interesting Adoption Indicator, Even as Its Price Action Faces pressure around $2,000 to $2,100. New data from the chain shows that the ETH network’s user base has expanded massively over the past decade.
As it turns out, Ethereum now has more than three times as many wallets with Bitcoin balances as the market may actually be a low price The second largest cryptocurrency in the world.
The Ethereum Holder Base is Parabolic
Santiment chain analytics platform recently highlighted an interesting trend Across the crypto market: Ethereum’s holder base has grown significantly compared to other major digital assets.
The data shows that ETH now has about 182.7 million empty wallets, compared to about 58.5 million for Bitcoin. This places ETH at more than 3.1 times the number of Bitcoin holders, and this difference has been steadily widening over the years.
The turning point occurred in February 2019, when Ethereum surpassed Bitcoin for the first time in terms of the total number of addresses that have a balance. Since then, the gap has widened and the growth of the ETH wallet has been on an upward curve, while the Bitcoin line has risen at a much slower rate.
Tether, despite its prevalence as a stablecoin, only has 12.96 million wallets, making Ethereum’s base more than 14 times larger. Interestingly, other prominent altcoins also fail to keep up with ETH where users are actively adding to positions. The number of empty wallets on XRP Ledger is 7.68 million, Dogecoin is 8.22 million and Cardano is 4.61 million. No one comes close to Ethereum.
The price is lagging behind acceptance, but the rally to $5,000 is intact
The above case for ETH is easy to understand. With 182.74 million empty wallets, the network has a deeper user base, and that kind of adoption could eventually affect the price. However, separation between The strength of the Ethereum chain and its current price of around $2,000 is not lost on market participants.
For example, crypto analyst Merlijn The Trader used the Ethereum Rainbow chart to predict a significant rally for the leading altcoin. According to the analyst, the Rainbow Chart entered its cheap zone for the first time since 2020, the same reading it had before ETH’s run from 700 to 4,800 in 2021.
Currently, there are two important levels to watch for Ethereum. A move above $2,500 will open the next chart bar, opening the door to a slow phase of the breakout to new highs. On the other hand, a drop of $1,900 Pushes ETH into the steal zone based on the rainbow model. At the time of writing, ETH is trading at $2,103, up 2.9% in the last 24 hours.
Featured image from iStock, chart from Tradingview.com
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