Is Ethereum Back? Record 267,000 new users sparks speculation

The second-largest cryptocurrency in the world, Ethereum, is experiencing a wave of change. There has been a surge in new user activity on the network despite a recent price cut, which has inspired confidence. But the disproportionate impact of big holders, or "whales," nevertheless has a lasting effect.

There has been an increase in the creation of Ethereum wallets, with a record 267,000 being created on April 28 and 29, according to data from blockchain analytics company Santiment. This inflow indicates a possible resurgence of interest in the Ethereum network and is the biggest two-day spike since October 2022.

Many cryptocurrencies are seeing large price declines, which defies the current market collapse. According to analysts, a number of causes could be driving the rise of new wallets, including:

Forecasting future expansion: Those who aretilling their bets on the network's long-term prospects may be watching the impending Ethereum updates, which are expected to bring enhanced security and scalability.
Hunters of Deals: The recent decline in price may present an alluring entry point for first-time Ethereum investors searching for a deal.

Even if the amount of new users is encouraging, a closer examination of Ethereum's address distribution reveals a significant holdings imbalance. 97% of Ethereum addresses, according to CoinMarketCap, have cryptocurrency valued between $0 and $1,000. This indicates a sizable group of modest investors, referred to as "minnows."

But a small group of people actually have the real power. Clank, a whale tracking website, calculates that although whales make up only 0.10% of Ethereum addresses, they own 41% of the total supply that is in circulation. This equates to a whale holding on average close to 10 million ETH, which is worth an astounding $3.7 million.

Ethereum seems to be surviving the current price decline better than the entire cryptocurrency market. At the moment, Ethereum has a market capitalization of $362 billion and is trading at $3,014. Notably, during the previous week, the market suffered an average decrease of 8.75%, demonstrating Ethereum's superior resiliency.

Furthermore, data indicates that the majority of Ethereum investors (74%) have held the cryptocurrency for a long time, indicating a high level of confidence in the project's future. The attitude of hodling suggests a dedication to sustaining their Ethereum holdings in the long run, despite transient market swings.

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