Whales and sharks don’t seem to find any good reason to stop accumulating tokens despite the ETH price dropping 33.93% in the last year. On-chain data shows that the number of addresses holding more than 1,000 ETH reached 7,091, an increase of 5.7%.
Moreover, actions like this suggest that even amid short-term price volatility, this group of holders has a long-term bullish outlook.
Despite a series of major upgrades implemented on the ethereum blockchain, prices have remained relatively stable over the past few months.
Typically, when investors see a development with great potential for improvement, they tend to stick with it and contribute more. So that likely drove the decision to accumulate.
However, data from Santiment points to a decline in Ethereum development activity. At the time of writing, that number has dropped to 53.
Development performance measures the developer’s commitment to perfecting the project’s system of work. Therefore, the aforementioned values imply a slower implementation of important innovations around the Ethereum blockchain.
In contrast, the Market Value to Real Value Ratio (MVRV) shows a completely different picture. At the time of writing, Ethereum’s 365-day MVRV rate is 22.79%. This means that sharks committing to buy ETH have made more profits over the past year.
At the same time, if ETH rises, current indicators may hinder further upward momentum. However, talk of a bull recovery negates speculation surrounding ETH being overvalued at this MVRV point.
Reduce Active Addresses
While whales have turned to spot buying opportunities, this sentiment is not present across the market as active addresses have dropped from 7.9 million to 5.8 million over the past 30 days.
Active addresses indicate the daily level of participation and speculation surrounding a coin. Hence, a dip is a reliable sign of slowing activity on the Ethereum network. Usually, this is a signal of declining interest in cryptocurrencies as a whole.
In terms of circulating supply, it should come as no surprise that ETH will plummet for most of 2022. However, at the time of writing, things have improved.
The increase in circulating supply to 46.8 million indicates increased ETH usage. The token is currently trading at $1,903, down nearly 1% over the past 24 hours.
- Mastercard Partners with Aptos Labs, Ava Labs, Polygon and Solana Foundation to Launch “Crypto Credential”
- ETH price hovers above $1,900, but breakout to $2,000 is unlikely
- Ex-CFTC Chairman Can’t Say Exactly if ETH Is a Security
According to AMBCrypto