Looking at the number of active addresses on a blockchain, one can often determine how popular a certain project is. The number of actual asset holders, however, is more interesting to look at. For Ethereum, there are now nearly 1.03 million addresses holding at least 1 ETH.
Ethereum is Akin to Silver
Comparing precious metals with cryptocurrencies is often a future effort. Even so, some similarities will become more apparent over time. Similar to the silver-gold relationship, Ethereum is the poor man’s Bitcoin, so to speak. It has a much lower price point for those who absolutely must own at last 1 full Ether.
Although no one is obliged to own a full Bitcoin, or a full Ether for that matter, it is a matter of psychology. Those who want to get into crypto assets with a smaller amount of money will be drawn to buying 1 Ether over 0.025 Bitcoin. Community members can easily debate which option is “better”, but that is a completely different debate.
Ethereum is also likely to benefit from a Bitcoin price increase. A bearish BTC market spells trouble for all alternative assets. When the world’s leading cryptocurrency turns bullish, Ethereum is often one of the first to follow suit.
Moreover, Ethereum has “industrial demand”, to continue the comparison to silver. It is used in a variety of products and services, primarily DeFi and dApps. Combined with its speculative value, it’s not hard to see why people are drawn to this crypto asset.
The 1 ETH Club Grows
Further illustrating the mindset of having to own 1 full Ether can be seen on this Glassnode chart. It depicts how many ETH addresses hold at least 1 full Ether at any given time.
Looking at this chart, a new all-time high level has been reached. For the first time in history, there are over 1.03 million addresses with a balance of at least 1 ETH. How many individual users this number represents, is very difficult to determine. It is likely to be a fair bit lower.
What is rather interesting is how this growth seemingly doesn’t correlate with the Ethereum price. A lower or higher price doesn’t affect the number of addresses holding 1 ETH or more all that much.
It is also worth mentioning that Glassnode only counts Externally Owned Accounts. This helps provide a more fair overall number.
All in all, this growth has been nearly constant. A steep dip between late December 2019 and early March 2020 has been overcome without issues. It will be interesting to see how long it takes to reach 1.5 million unique addresses holding at least 1 Ether.
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