The crypto market has been on a roller coaster in 2020. Most of the coins have recorded massive gains, which makes many analysts believe that the next bull run has already started. Notably, the bull run that Ethereum entered was majorly driven by bitcoin. That bull run now appears to be doing more than just increasing the price.
Today, more people are holding at least one ETH in their wallets. The data published on December 5 indicates that 1,175,681 addresses are having at least one ETH on the network.
This rise in the number of wallets that have that amount of ETH might be an indication that an increasing number of investors are having some interest in the second-biggest crypto and might be accumulating more.
That might be a possible move to benefit from ETH’s wild price gains that have been happening lately and which analysts think that it will continue. Ethereum price was relatively quiet in 2020 until when BTC embarked on a major rally. This rally has mainly been attributed to the entry of institutional investors into the market.
Even though Ethereum had managed to rise briefly from $245 in July to $470 in September, the price surged above the $500 level for the first time on November 20. This upward momentum continued to over $600 before the should pullback that affected the entire cryptomarket.
Ethereum Price Is Still Strong
Despite that pullback, Ethereum seems to be holding on with its price at above $595 at the time of writing. Notably, the total number of addresses that hold at least one ETH has been on a constant increase since the start of 2020 even though the prices started the year slowly. By June 2020, there were just one million such addresses and that number has almost doubled now.
The recent launch of Ethereum 2.0 might be a part of the reason behind the development. However, it may lead to even more addresses reaching this level. Based on the latest reports, there are over 900,129 ETH staked on Ethereum 2.0 as of December 2, 2020.
Since the system is well designed to reward the stakers who help in securing the network, that number may increase significantly as time passes on. Ethereum is also the network on which the whole decentralized finance (DeFi) market is built. In recent months this ecosystem has thrived and grown considerably this year with more investors coming in and making considerable investments.
If that trend continues, Ethereum price may still be on an upward trend since it is still far from the 2017 bull run all-time high of $1,300 during which the number of wallets with one ETH or more increased by around 1000%.