Despite the remarkable price surge of Ether since the start of the year, there’s been a noticeable decline in the number of investors with over 1,000 ETH in their wallets. A recent analysis by Glassnode reveals that the count of Ethereum addresses holding 1,000 or more coins has plunged to a five-year low of 6,082.
A Decline in ETH Rich Lists
Comparatively, back in 2019 when Ether’s value fluctuated between $100 and $300, there were more than 8,000 such addresses. The current figures could indicate that significant ETH investors have decided to offload some of their holdings in recent months. Alternatively, it could suggest that others are uncertain about potential price growth and choose not to increase their holdings beyond the current level.
Factors Influencing the Decline
According to an analysis by Matrixport, several factors suggest Ether might experience a price drop in the near future. One such factor is the plan of FTX’s creditors to sell billions in crypto assets, including ETH. The former crypto giant reportedly holds at least $90 million worth of the coin. Releasing such a significant amount into the market could trigger a supply shock, potentially driving the price down.
Decrease in Profitable ETH Addresses
In addition to the decrease in ETH Addresses Holding Over 1,000 Coins, the overall number of Ethereum addresses in profit has also dwindled recently. The latest figures indicate that only about 53.5% of addresses are in profit, marking an eight-month low.
While these trends might seem concerning, it’s crucial for investors to remember that the crypto market is inherently volatile and unpredictable. Therefore, making informed decisions based on comprehensive data is crucial. Platforms like cryptoview.io can provide valuable insights and analytics to help navigate the complex world of cryptocurrency investments.
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