What is it about the largest altcoin that can make an investor bet on it? Well, the fact that Ethereum2.0 deposit address on 10 March exceeded the total number of ETH locked which stood at 10 million, at the time of writing. Despite this, the market trend hasn’t been in favor of ETH’s positive price action.
Change your point of view
Ethereum, the main altcoin, has acted as a “resource” for different platforms. In 2015, the Ethereum network began its journey by offering 72 million ETH to approximately 10,000 Bitcoin addresses that participated in the ICO- distributed to over 144.7 million registered wallets.
Despite ‘brutal redistribution trading hands’, a large majority of ETH remained static over the years. Here’s a sign of this- the graph below.
According to the chart, only 6.5% of the supply was active in the past 5-7 years. And, only about 0.3% on average per day. Now, it is safe to assume that the circulating supply of ETH was much lower than expected.
Other positive factors included ETH’s percentage of supply in Smart Contracts as well as the introduction of EIP-1559. The latter introduced a fee-burning mechanism from the already existing ETH in the supply.
On top of that, stablecoins have consumed a large chunk of ETH. The altcoin king was often used to borrow stablecoins in DeFi. Probably the reason why stablecoins were attracting billions of dollars.
At press time, the total market cap of stablecoins accounted for more than $180 billion.
Bullish developments
Ethereum has long been criticized for its high gas fees. Well, it is interesting to note that Ethereum transaction fees recently dropped to their lowest level in 6 months. According to Etherscan.io data, the average transaction cost on Ethereum at the time of publication was 40 gwei or $2.24.
At press time, unfortunately, ETH suffered yet another correction of 1.20% in 24 hours. It was trading at the $2,562 mark with speculations of further setbacks.
