ETH 2.0 expectations have been heating up the Ether market
There are more addresses profiting from positions in Ether than addresses profiting from Bitcoin
The Ethereum network had an explosive growth throughout 2020, due to the expectation of updating its network, which will happen on December 1st, 2020. The total number of Ethereum addresses with a positive balance increased, reaching the 38.18 million mark, representing 77% of the addresses that have some balance of Ethereum, according to IntoTheBlock data.
The Bitcoin network currently has 30.3 million addresses in profit, which represent 92% of Bitcoin Future platform addresses with any balance. That is, there are 8 million Ethereum addresses in profit more than Bitcoin addresses.
The interesting thing about this data is to observe its context. Bitcoin has gained significant value during 2020 and has debased many macro assets, coming very close to its historical maximum. Ether, however, despite its valuation, is very much its historical maximum.
According to IntoTheBlock, an address with a retention time of more than one year should be considered as a hodler. As can be seen in the graph below, the number of ETH hodlers has increased by over 11.45 million in the last twelve months. Due to the significant increase in asset prices, many investors are already in profit positions.
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The Hodlers have continuously shown an almost linear growth every month, despite the Ethereum price drop of about 50% in March, the asset recovered, rising more than 300% between the crash and the writing moment of this article. With this new momentum, the number of addresses rose to about 28.41 million, a historical record for this metric, which represents 57.7% of total ETH holders.
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After peaking at around $620 on Monday, November 22, Ether began to fall on Tuesday night. Although the ETH has experienced a small correction, signs of upward momentum are everywhere. The Ether is being traded at the time of this writing for $505.58.
DeFi Ecosystem Boosting the Hype
The popularity of decentralized finance and the associated tokens that use the Ethereum network, drives the hype around crypto. While the value of many of these individual tokens has fallen from their previous bullish rallies, the total value in dollars blocked in DeFi remains strong, $14.05 billion at the time of this publication.
DeFi has experienced explosive growth over 2020, with the number of users increasing 10 times compared to January this year, according to IntoTheBlock and data confirmed by Alethio.
The amount of Bitcoins blocked in the Ethereum network grows
Since Bitcoin cannot be easily moved between chains, tokenized versions of Bitcoin are available in the Ethereum blockchain. These ERC-20s are indexed 1:1 to the price of Bitcoin and are backed by the equivalent amount of Bitcoin.
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At the moment, 167,25 thousand BTC, which represents 0.9% of the outstanding offer, are tokenized and blocked in DeFi Protocols.
The Decentralized Finance market continues to offer globalized access to financial services such as loans, custody, interest and trading, having grown more than US$ 13 billion in tokens blocked in DeFi protocols.
Synthetic tokens such as the wBTC are already responsible for moving millions in synthetic bitcoin in decentralized exchanges.