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Despite the crypto market downturn, the Ethereum network saw a record influx of new users at the end of April. This new momentum has reignited hope, but the impact of the “whale” has also raised questions.
Rush to Ethereum
According to blockchain analysis specialist Santiment, 266,600 new Ethereum wallets were created on April 28th and 29th, a record since October 2022. This surge stands in contrast to the overall gloom in the cryptocurrency market.
Several factors explain this new interest.
- Looking forward to future network updates aimed at improving performance and security.
- The recent price decline is being perceived as a buying opportunity for investors looking for a bargain.
However, behind this improvement lies a more subtle reality. According to CoinMarketCap, 97% of Ethereum addresses hold less than $1,000 of the cryptocurrency, while 41% of the circulating supply is concentrated in a small number of “whales” according to whale tracking platform Clank.
On average, each whale owns nearly 10 million ETH, worth $3.7 million, giving them significant influence over the network.
ETH is strong even in the storm
Despite concerns about capital concentration, Ethereum has shown resilience. Its price has increased 30% since the beginning of the year, while the general cryptocurrency market has fallen 8.75% in one week. ETH is currently trading at $2,971.73, giving it a market cap of $352 billion.
This relative stability reflects investor confidence. According to available data, 74% of Ethereum holders bet and maintain their positions for the long term despite market volatility. This idea of “HODLing'' (hold on for life) expresses their belief in the future potential of the project.
As a large number of new users arrive on the Ethereum network, hopes for future improvements and investment opportunities due to the recent price drop are fueling optimism. However, the concentration of property in the hands of a few “whales” remains a concern for local communities. Time will tell whether Ethereum can maintain this positive momentum and further democratize the ecosystem.
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Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
