When the ETH price hit its 2018 peak at $1,382, there were about 8.8 million wallet addresses with a non-zero balance, Glassnode data shows.
“The ETH supply doesn’t increase anymore,” wrote Ki Young Ju, CEO of Crypto Quant.
It will be important to track what effects the launch of various NFT marketplaces on centralized exchanges such as FTX, Binance, and soon Coinbase will have on Ethereum usage metrics.
Token holders can delegate their holdings to different validators to help secure the network in exchange for a yield, which locks up supply and puts upward pressure on price.
Similar to ETH, the BTC price action has not been indicative of the underlying fundamentals.
Since the Chinese bitcoin mining ban took place and the market experienced a drastic reduction in hashrate, the amount of computing power dedicated to securing the bitcoin network has recovered.
In May of 2020, the bitcoin network underwent a halving – when the block subsidy paid out to miners gets slash by 50%.
At the beginning of uptrends, it is normal for long-term BTC holders to begin taking some profits.
The average cost basis of all BTC in circulation then rises, which theoretically raises the floor price of BTC.
Other notable Glassnode Insights include accelerated outflows from centralized exchanges, large increases in on-chain activity, and supply last moved less than three months ago is at all-time lows implying that long-term investors will set the price.
“There is a culmination of months of net outflows from exchanges and coming off the market, coupled with increasing demand,” Martha Reyes, head of research at BEQUANT, told Blockworks in an email.