Ethereum maintains a commanding lead over Bitcoin in an interesting adoption metric amid continued price volatility. Pressure around $2,000 to $2,100. New on-chain data shows that ETH’s network user base has expanded tremendously over the past decade.
Currently, Ethereum has more than three times more wallets with balance than Bitcoin. It might actually be cheaper The world’s second largest cryptocurrency.
Ethereum’s holder base goes parabolic.
On-chain analysis platform Santiment An interesting trend has been highlighted recently. Cryptocurrency Market as a whole: Ethereum holder base has grown significantly more than any other major digital asset.
Data shows that ETH currently has around 182.7 million non-empty wallets, compared to around 58.5 million for Bitcoin. This makes ETH more than 3.1 times the number of Bitcoin holders, a gap that has been steadily widening over the years.
The turning point came in February 2019, when Ethereum surpassed Bitcoin for the first time in the total number of addresses holding balances. Since then, the difference has widened, with ETH’s wallet growth trending upward, while Bitcoin’s line is rising at a much slower pace.
Despite its ubiquity as the dominant stablecoin, Tether has 12.96 million wallets, making Ethereum’s base more than 14 times larger. Interestingly, no other notable altcoin can keep up with ETH in terms of users actively adding positions. The number of non-empty wallets for XRP Ledger is 7.68 million, for Dogecoin is 8.22 million, and for Cardano is 4.61 million. There is nothing close to Ethereum.
Price lags adoption, but gains to $5,000 remain intact
The bullish case for ETH is easy to understand. With 182.74 million non-empty wallets, the network has a much deeper user base and this kind of adoption could eventually be reflected in the price. but, disconnection between Ethereum’s on-chain strength and current price of around $2,000 are not lost on market participants.
For example, cryptocurrency analyst Merlijn The Trader used the Ethereum rainbow chart to predict a notable uptrend for major altcoins. According to analysts, the rainbow chart has entered cheap territory for the first time since 2020, the same level ETH was at before rising from $700 to $4,800 in 2021.
There are currently two important levels to watch for Ethereum. A move above $2,500 will unlock the next band on the chart, which will open the door to a slow distribution phase towards new highs. on the other side, Fall below $1,900 Based on the Rainbow model, it will push ETH into theft territory. As of this 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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