During the recent market decline that pushed Ethereum’s price below $1,650, the network witnessed a significant increase in large address activity, reflecting the heightened volatility in its price. This phenomenon indicates that both retail and institutional investors are actively engaged in trading and transferring Ethereum during these turbulent market conditions.
Source: Santiment
The resurgence in the number of wallets holding between 10 and 10,000 ETH, reaching a count of 355,000, suggests a renewed interest among mid-range holders. This could imply that individuals and smaller entities view the price dip as an opportunity to accumulate or re-enter the market at a more favorable price point. The rise in these wallet numbers is indicative of the decentralized and broadening ownership of Ethereum.
Surge In Transactions
Furthermore, the surge in transactions involving $100,000 or more suggests increased participation from high-net-worth individuals or institutional players. Such large transactions can be attributed to various activities, including institutional investments, trading between exchanges, or movement of funds for smart contract interactions.
Ethereum’s price volatility often prompts active trading, and these recent trends reflect the network’s responsiveness to market conditions. The increase in both mid-range holders and substantial transactions could signify growing confidence in Ethereum’s long-term potential despite short-term price fluctuations. However, it’s important to note that market conditions can change rapidly, and while these metrics provide insights, they should be considered alongside other factors when analyzing Ethereum’s overall trajectory.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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