According to data from the analytical service provider Glassnode, over 90% of people who currently have Ethereum (ETH) tokens bought the cryptocurrency at a lower price than today.
Over 90% of the circulating #ETH supply is now in a state of profit, i.e. the current price is higher compared to the price at the time the coins last moved.
Last time this we saw this level was in Feb 2018 when the $ ETH price was at $ 925.
– glassnode (@glassnode) August 3, 2020
Recently, Ethereum has enjoyed record results. The last time so many ETH holders made a profit 2 years ago.
The price of ETH rose from $ 110 after the March crash to hit a two-year high of $ 413 on Saturday. At the time of writing, Ethereum costs $ 393.
Over 90% of the current supply of ETH is now considered “in the money” aka in profit. pic.twitter.com/5OeDSm6RXK
– Anthony Sassano | sassal.eth 👨🌾 (@ sassal0x) August 3, 2020
“More than 90% of the current supply of ETH is now considered profit.”
– wrote on his twitter Anthony Sassano, co-founder of the EthHub platform,
When asked to provide analytical data (taken from Into The Block data), he explained that the price is volume driven, meaning the average price of an investment contract traded intraday is based on both volume and price.
The chart shows that few people who bought ETH in January 2018, while Ethereum scored their ATH of more than $ 1,000, still own it.
“You see many of the ETH have either been bought at low prices or have been kept without sale since its inception.”
Ethereum was celebrating its fifth birthday on Friday, and many in the community expected the project’s outlook to be increasingly positive.
The soaring popularity of decentralized finance (DeFi) seems to be partly responsible for the rise in Ethereum’s price. The appeal of “yield farmin”, loan protocols that give users easy access to money and high interest rates, as well as other custom financial products, brought the market capitalization of DeFi tokens placed on Ethereum last week to $ 8 billion. The total value blocked in DeFi smart contracts is currently over $ 4 billion.
Ethereum will also undergo a major update, Ethereum 2.0, which aims to increase its scalability in the coming months.