Bitinfo Reveals Some Interesting Data on Bitcoin & Ethereum
Bitcoin has been very stable for the past few months. Its price has been fluctuating between $9000 to $9800 with a few slips below $9000, just to recover nearly instantly. While many are anticipating a major rally following Bitcoin's halving and due to a weakening U.S. Dollar.
While many positive indicators exist, such as Bitcoin's hash-rate & mining difficulty algorithm reaching new highs, it hasn't affected the price quite yet.
What's Going on With Ethereum
While being a tad more volatile, Ethereum has also been relatively stable. ETH has been trading between $220 to $250 for nearly 3 months, and like Bitcoin seems to struggle breaking resistance. Ethereum's much anticipated ETH 2.0 is due to release soon which could affect the price, however.
Ethereum's ecosystem has been booming, however. Many new Decentralized Finance or DeFi tokens have been released, such as Compound (COMP) and more established tokens such as Bancor (BNT) have been upgrading their protocol. Many of these protocols allow passive income by "yield farming" or lending and have quickly grown in popularity.
Active Wallet Info
As per BitinfoCharts' the amount of active Bitcoin wallets has declined a bit while Ethereum's active wallets have been growing. Recently, the number of Active Bitcoin Addresses has declined slightly to 555,122k while Ethereum has grown to 536,009K.
The most likely reason for the decline in active addresses is the increase of Bitcoin long term holders. For Ethereum's increase, DeFi is possibly the reason for growth as over $2.28B is locked into various protocols. As ETH is required for gas fees, DeFi "yield farmers" and traders will need to pay the ETH transaction fees.
The only other times Ethereum Active Addresses were close to, or outranked Bitcoin are few. One was on the 16th of June 2019 with 585.851k active Bitcoin addresses vs 577.168k active Ethereum addresses.
During the peaks of 2018, Ethereum managed to outrank Bitcoin active addresses with 985.166k active Bitcoin addresses vs 999.589k active Ethereum addresses.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado