Despite a 33.93% drop in the last year, Ethereum [ETH] whales and sharks have found no reason to stop collecting the coin. According to on-chain data, the number of addresses holding 1,000 or more ETH increased by 5.7% to 7091.
Furthermore, this action suggested that, despite short-term price fluctuations, this group of holders has a long-term bullish outlook. Although the price has remained relatively stable in recent months, the Ethereum blockchain has undergone significant upgrades.
When investors believe that a particular development represents significant progress, they are more likely to stick with the project and contribute more. As a result, the decision could have accumulated as well.
However, according to Santiment data, Ethereum’s development activity has slowed. At the time of publication, the metric had dropped to 53. In this context, development activity measures developers’ commitment to polishing a project’s working system. As a result, the above value implies that major innovation in the Ethereum blockchain has slowed.
The Market Value to Realized Value Ratio (MVRV) was a completely different story. At the time of publication, Ethereum’s 365-day MVRV ratio was 22.79%. This means that the sharks who were committed to purchasing ETH profited more over the last year.
At the same time, if ETH continues to rise, the current metric condition may act as a barrier to further gains. However, there has been talk of a bull market resumption, which could negate speculation that ETH is overvalued at the MVRV level.
While whales have turned to spot purchasing opportunities, the overall market has not. This was due to a decrease in active addresses from 7.9 million to 5.8 million in the previous 30 days.
The number of active addresses indicates the daily level of participation and speculation in relation to a token. As a result, the decrease is a reliable indicator that activity on the Ethereum network has slowed. This is frequently used to indicate that general interest in a cryptocurrency is low.
In terms of circulation, it was unsurprising that ETH plummeted for the majority of 2022. However, at the time of writing, the situation had improved. The increase in circulation, at 46.8 million, indicates an increase in the use of ETH. The coin was trading at $1,800, up 4.41% in the last 24 hours.
