After growing by almost 70% in the first six months of the year and getting close to its all-time high of $4 300 seen in early 2021, Ethereum’s value has slumped by 25% in the past month – and the massive $900 price correction has significantly impacted the share of ETH addresses in profit.
According to data presented by AltIndex.com, roughly 70% of Ethereum addresses were profitable last week – or 20% less than just a month ago.
Ethereum has seen considerable price fluctuations over the past eight months. The world’s second-largest crypto by market cap began 2024 at $2 300, but continued rising in the following months. By mid-March, its price skyrocketed above $4 000 – standing only $300 short compared to an all-time high from February 2021. The following three months brought huge price corrections, causing ETH valuation to dip below $3 000 in May and then bounce back to $3 800 a month later.
Although this figure dropped again by 13% to $3 320 by the end of July, the first week of August brought another shock. The rising concerns about inflation, interest rate hikes by the US Federal Reserve, and traders’ concerns that the 2024 cryptocurrency bull run might be over spilled over into the crypto space, causing the entire sector’s 20% decline in less than a week.
However, Ethereum’s price was also hit by the launch of multiple spot Ethereum ETFs leading to a “sell-the-news” reaction and causing a sharp price decline. These factors, combined with declining Ethereum network activity, pushed the ETH price to its lowest point in months of around $2 100. Although this figure recovered to roughly $2 700 as of last week, the share of ETH addresses in profit is still far from what it was just a month ago.
According to data from crypto analytics platform Glassnode, 69% of ETH addresses were profitable last week – down from 88% in July. Moreover, this is the lowest share of profitable addresses the Ethereum network has seen in the past 10 months.
By contrast, Bitcoin – the world’s largest crypto – demonstrated a more robust recovery from the price slump in the first days of August. Its share of profitable addresses, which had dropped to 80% in the first days of the month, quickly rebounded to over 91% in the past two weeks.
Besides a massive 20% drop in the share of profitable addresses, the world’s second-largest crypto has also seen a significant decline in the number of active addresses. According to Glassnode data, the Ethereum network counted roughly 7,8-million active addresses last week, or one million less than just four months ago.
The number of unique addresses holding at least 1 ETH also declined, falling from 1,68-million to 1,63-million in this period.
The Glassnode data also gave interesting insight into the balance of ETH addresses measured in US dollars. As of last week, there were 13 300 addresses with at least $1-million in their balance – 2 300 less than just a month ago, and 5 500 less than in March.