60% of Bitcoin (BTC) Supply Hasn't Moved in Over a Year, Glassnode Says

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Sat, 05/30/2020 - 15:11
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Vladislav Sopov
Hodlers' accumulation, which are revealed by the increased number of dormant Bitcoins (BTC), is typically treated as a bullish sign. But the ongoing one may be specific.
60% of Bitcoin (BTC) Supply Hasn't Moved in Over a Year, Glassnode Says
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Glassnode's research team, which address the sphere of on-chain cryptocurrency analytics, explained why the actual Bitcoin (BTC) market closely resembles 2017.

Is Patience a Virtue?

Analysts at Glassnode revealed a chart that demonstrates the dynamics of some very interesting metrics. They tracked the quantity of Bitcoins (BTC) that stayed dormant for at least a year.

Glassnode chart of dormant Bitcoins (BTC)
Image via Twitter

According to the chart, the number of dormant Bitcoins (BTC) is flirting with 60%. The last time it was this high was just before the most bullish price rally of 2017. 

It was this rally which catapulted the price of Bitcoin (BTC) to its actual all-time high (ATH) of $19,786 on December 17, 2017. 

Shortly after the bearish reversal in 2018, the share of dormant Bitcoins (BTC) touched its local low at 40%, This resulted in a panic sell-off.

Hodlers Dominate

Hodling (crypto slang for 'holding') trends are crucial not only for the Bitcoin (BTC) blockchain. Adam Cochran of Metecartel Ventures DAO, highlighted that Ethereum (ETH) whales are going through the stage of accumulation.

While the price Ethereum (ETH) is nowhere near its best levels, the top 10,000 wallets in Ethereum (ETH) continue to accumulate show zero interest in selling their altcoins.

The situation with the exchange balances is quite different. While Bitcoins (BTC) continue to leave storage exchanges in favor of cold wallets, Ethereum (ETH) is accumulated by the top centralized exchanges.

For example, Bitfinex's Ethereum (ETH) balance surged almost 60%, just barely touching the insane 4M Ether mark. Analyst Elias Simons of Decentral Park suggests that this may have been caused by Bitfinex's plans to participate in the Ethereum (ETH) 2.0 staking, or to cover the gas fees of the ERC20-based Tether (USDT). Bitfinex may also target better funding rates for Ethereum (ETH) stakers than those being offered on other DeFi markets.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)