According to blockchain analyst firm Santiment, Ethereum has experienced a significant surge in price dominance against Bitcoin, marking a remarkable +22.4% increase over the past week. This bullish momentum has been accompanied by a rise in the creation of new ETH addresses, further solidifying its position as a leading cryptocurrency.
Over the past week, an astonishing 89.4K new addresses have been created on a daily basis. The surge in user adoption indicates a growing interest in ETH, both as a store of value and as a medium for transactions. Furthermore, the data reveals that just yesterday, a staggering 96.3K new wallets were established, underscoring the increasing popularity and utilization of the second-largest cryptocurrency by market capitalization.
One noteworthy aspect contributing to ETH’s current dominance is the dwindling supply of the cryptocurrency on exchanges. The supply on exchanges is approaching its All-Time Low, standing at 8.05%. This level has not been witnessed since the opening week of ETH trading. The decline in available supply on exchanges suggests a growing trend of movement towards self-custody and staking.
The shift towards self-custody and staking is seen as a positive development for ETH holders. It implies a reduction in the risk of an impending selloff, in stark contrast to a more concerning scenario of rising supply on exchanges.
As more users opt for self-custody and stake their Ethereum, it limits the amount of the cryptocurrency available for trading on exchanges, potentially stabilizing its price and preventing large-scale sell-offs. However, the increasing number of new addresses and the decline in supply on exchanges reflect a growing confidence in ETH’s long-term viability and potential for sustained growth.
Cathie Wood’s Ethereum Enthusiasm
Previously, Cathie Wood, the influential CEO of ARK Invest, is a vocal advocate for cryptocurrencies, particularly Bitcoin and Ethereum. As per the recent interview, Wood’s bullish sentiments on Ethereum stem from its pivotal role in decentralized finance (DeFi) and non-fungible tokens (NFTs), addressing the increasing demand for yield in financial markets.
She underscores the importance of tracking developers in the crypto space, highlighting Ethereum’s vibrant ecosystem and its significant support for diverse applications, including DeFi and NFTs.
Wood’s optimism regarding Ethereum doesn’t overshadow her positive outlook on Bitcoin. She perceives both cryptocurrencies as having a bright future, advocating for investment during volatile times, asserting that it strengthens credibility and investor confidence in these digital assets.
Wood’s optimism about Ethereum rests on its multifaceted role in the evolving digital economy. She sees Ethereum as not just a digital currency but a foundational platform for a new decentralized financial ecosystem, potentially outperforming Bitcoin in the long run. Ethereum’s ongoing shift to “Ethereum 2.0,” aimed at improving scalability and efficiency, further adds to its appeal for developers and investors alike.
Related Reading | Bitcoin Explodes: Can Digital Gold Topple $60T Dollar Throne?