Even as the market reeled under the devastating bearish condition, Ethereum [ETH] has managed to hold its fort above the $2,000 range. One of the main drivers of the demand in the Ethereum ecosystem is the much-anticipated London hard fork.
As the market prepares for this significant upgrade on the network on the 4th of August, on-chain activity saw a major uptick. the flip in the trend has been rather quick as an on-chain activity for the network, in the third week of June, fell to levels that were last seen a year back.
Ethereum on-chain activity intensifies
According to the latest edition of ITB’s weekly report, despite shedding more than 50% in price, the long-term Ethereum holders remain undeterred. The number of hodlers or addresses that have been holding for over one year has maintained an upward trajectory in spite of the volatility in the market.
The figures are nearing 36 million addresses, meaning that the number of ETH hodlers has been growing steadily regardless of its price action. ITB noted that this trend depicted “high conviction from long-term players,” which is remarkable considering how panic can sway the cryptocurrency market especially during times of high volatility in addition to the anticipation of the upcoming protocol upgrades.
ITB also noted that the on-chain flows depicted intensifying bullish activity especially in terms of funds outflow from centralized exchanges [CEX]. Gauging this indicator, it was observed that investor positioning for Ethereum is positive about the crypto-asset’s price activity.
As a matter of fact, net flows in Ethereum’s case have hit a new record low. On the 2nd of July, a total amount of $1.3 billion worth of ETH had poured out of centralized crypto exchanges. The latest trend in the market could be translated as a bullish one that indicates “holders are leaving exchanges for more secure or yield-generating locations.”
“Overall, short-term the direction for Ether’s price remains uncertain. At the same time, though, progress and conviction in Ethereum continue to grow as demonstrated by on-chain activity in anticipation of the London hard fork.”