DeFi and ETH2.0: Two Reasons Ethereum Addresses are Increasing

Within the tweet, is a chart demonstrating the impressive growth of addresses holding one ETH or more. From the chart, it can be observed that Ethereum’s address growth entered a new phase beginning in 2020.

The growth in the past eleven months or so, coincides with a 2,000% increment in the total value locked in DeFi. Therefore, the growth of the DeFi industry and yield farming is one reason the number of Ethereum addresses owning one ETH or more has reached a new all-time high.

Furthermore, the Ethereum network has just begun the journey towards upgrading to ETH2.0. The first block of ETH2.0 was mined early yesterday heralding the beginning of what will be a future of a more scalable and efficient Ethereum network. The prospects of such an efficient Ethereum network and rewards from staking is one reason crypto exchanges such as Binance and Coinbase will be supporting staking of ETH2.0 on their platforms.

The progress of ETH2.0 is therefore another reason crypto investors are looking to own at least one Ethereum based on staking rewards and the possibility of the digital asset gaining value with time.

Quick take:

  • The number of Ethereum addresses holding one or more ETH has hit a new all-time high of 1,174,377
  • The increase is due to the progress of ETH2.0 and the potential of staking Ethereum
  • The popularity of DeFi is also behind the increment of addresses holding at least one ETH
  • The value of ETH has rebounded from yesterday’s sell-off and is attempting to reclaim $600 once again

The number of Ethereum addresses holding one ETH or more has hit a new all-time high of 1,174,377. This is according to on-chain data from Glassnode that was shared via the following tweet.

📈 #Ethereum $ETH Number of Addresses Holding 1+ coins just reached an ATH of 1,174,377

Previous ATH of 1,174,175 was observed earlier today

– glassnode alerts (@glassnodealerts) December 2, 2020

Ethereum is Attempting to Regain $600

With respect to price, Ethereum has rebounded from yesterday’s sell-off that saw ETH drop to as low as $560. At the time of writing, Ethereum is trading at $597 in what looks like an attempt to recapture the $600 price level.

On a macro level, both the daily and weekly charts hint at a pullback or possible consolidation for Ethereum in the days to follow. The value of Ethereum on each of these macro time-frames has extended in a parabolic manner thus hinting at the two mentioned scenarios for ETH.

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