Number of Ethereum Addresses Holding at Least 100 Coins Plunges as Chinese Clampdown Looms
Ethereum on-chain metrics are on the decline as China's clampdown looms.
The number of retail Ethereum holders is on the decline, as on-chain data suggests.
Per Glassnode updates, the Ethereum number of addresses holding at least 32 and 100 coins have dropped to their lowest levels in 21 months and 3 years, respectively. In particular, the 100 coin holders have dropped to a low of 42,342, a drop from the peak of over 53,000 holders achieved towards the last quarter of 2020.
There has been a lot of upsurge in interest in the broader cryptocurrency markets, with Ethereum trailing Bitcoin (BTC) in terms of interest from institutional and retail investors and market capitalization. The height of the growth in these digital assets came early in Q2 when Ethereum hit a record high of $4,362.35, according to data from CoinMarketCap. However, the market is experiencing a major downturn, attributing to the ban by the Chinese government against crypto mining and all forms of digital currency transactions.
The ongoing clampdown on crypto-related activities has also stirred the paring off of earlier records. The Ethereum blockchain has recorded amidst the previous bull run. Per Glassnode’s data, the total number of Ethereum addresses in profit also hit a 1-month low of 53,246,022.006, based on a 7-day Moving Average. This is complemented by the increase in the number of addresses in loss, which attained a 6-month high of 6,428,573.274.
The lower activities occurring on the Ethereum network have eased off the congestion pressure in the blockchain, bringing fees lower. However, market dynamics have prevented further accumulation of Ether and a robust transaction that can spike the renewed growth of the cryptocurrency. Its strong fundamentals bolster the future outlook of Ethereum as a decentralized finance hub and per the anticipated upgrades in the works.
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