The current crypto bull market gives a second life to many major assets. Even Bitcoin ad Ethereum hit new all-time highs, although not in the price department. Instead, the number of addresses holding a significant balance of either asset is rising quickly.
More Addresses Holding 0.1+ BTC Is Bullish
One can look at various metrics and analytics to determine the popularity of cryptocurrency assets. Overall transaction count, transfer volumes, and exchange supplies are crucial indicators. However, it remains essential to look at the number of addresses holding a balance. For Bitcoin, a balance of 0.1 BTC or more is significant, representing a steep amount of money.
Per Glassnode, more addresses are holding 0.1+ BTC than ever before. Hitting a new all-time high in this department is bullish, especially given the weak start to 2022 for all cryptocurrencies. A sudden market revival is happening right now, although no one knows if it will last long. Even so, the number of addresses with that balance currently sits at 354,894, which is pretty impressive.
Despite the rise in the number of addresses holding 0.01+ BTC, that doesń’t mean there are more bitcoin holders. Anyone can create additional wallets and distribute their BTC holdings accordingly. Moreover, users depositing BTC to exchanges will regularly generate a new deposit address. Therefore, an increase in this metric is never surprising, although it remains significant.
Moreover, it shows the overall supply of BTC gains better distribution. No one knows how many unique users are part of this metric, but it is good to see more addresses with that balance. It may signal onlookers to start stocking up on bitcoin, even if only in small amounts. However, the total supply remains very limited, and scarcity will come into play sooner rather than later.
ATH Number of Addresses Holding 0.01+ ETH
Like the bitcoin metric, Ethereum notes an all-time high for the number of addresses holding 0.01+ ETH. It represents a much lower value per address than bitcoin but is an equally crucial metric. Most people consider Ether to be a much more affordable investment to BTC, even though the ecosystem has very different metrics regarding supply, issuance, and so forth.
One may wonder whether this all-time high really matters. Seeing nearly 22 million addresses hold 0.01+ ETH is interesting but doesń’t necessarily say much. Splitting roughly $30 in ETH value across multiple addresses isn’t necessarily hard to do. However, current gas fees would make that unfeasible, assuming one was trying to manipulate the metrics for an unknown reason.
Overall, both bitcoin and Ethereum are finally hitting their groove again after a rough start to the year. The big question is whether they can sustain any upward momentum for more than a few days in a row. Much value has been lost these past few months, yet a sudden recovery may trigger more bearish pressure in the coming days.
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