Crypto: Ethereum’s strong comeback, a wave of new followers revives speculation

The Ethereum network saw a record influx of new users at the end of April, despite a bearish crypto market. This newfound momentum is rekindling hope, but the influence of “whales” raises questions.

The Rush Towards Ethereum

According to Santiment, a company specializing in blockchain analysis, April 28 and 29 saw the creation of 266,600 new Ethereum wallets, a record since October 2022. This surge contrasts with the general gloom of the crypto market.

Several factors explain this renewed interest:

• The anticipation of upcoming network updates, aimed at improving its performance and security.
• The recent fall in prices, perceived as a buying opportunity by investors looking for bargains.

However, behind this improvement hides a more nuanced reality. According to CoinMarketCap, 97% of Ethereum addresses hold less than $1000 in crypto, while a handful of “whales” concentrate 41% of the circulating supply, according to Clank, a whale tracking platform.

On average, each whale owns close to 10 million ETH, equivalent to $3.7 million, giving them a considerable influence over the network.

ETH Stands Strong Amidst the Storm

Despite concerns related to capital concentration, Ethereum has shown resilience. Its price has risen by 30% since the beginning of the year, while the general crypto market has fallen by 8.75% in one week. Currently, ETH is trading at $2971.73 with a total market capitalization of $352 billion.

This relative stability reflects investors’ confidence. According to the data available, 74% of Ethereum holders bet on the long term and keep their positions despite the market volatility. This “HODLing” (Hold On for Dear Life) mentality illustrates their belief in the project’s future potential.

The massive arrival of new users on the Ethereum network sparks optimism, fueled by the anticipation of upcoming improvements and investment opportunities due to the recent drop in prices. However, the concentration of holdings in the hands of a few “whales” remains a matter of concern for the community. Time will tell if Ethereum can maintain this positive momentum and further democratize its ecosystem.