KEY POINTS

  • 90 percent of all ETH holders are in profit thanks to recent price rally
  • Ethereum has preceeded Bitcoin's price action on Aug. 1
  • Excitement over DeFi and Ethereum 2.0 continues to be the narrative for the second-largest cryptocurrency

More than 90% of Ethereum holders have profited, having bought the world’s second largest cryptocurrency at the price below the current value, data from analytics firm Glassnode revealed.

Ethereum reached $418 on Aug. 1, a level it has not visited since 2018. It quickly slid down to sub $320 in 15 minutes but managed to slowly crawl its way back to near $400 in the next two days. These were unfamiliar levels for buyers because Ethereum’s price was rarely above this area. 

According to Glassnode, 90% of all circulating ETH supply were in a state of profit. This means the current price of ether was higher than the last time the coins moved. The firm also said the only time 90% of all ETH holders were in profit before was in February 2018 when the price was around $925.

Ethereum was up 351% since the March 2020 crash when the cryptocurrency slipped below $100. Ethereum led the crypto market’s rally and preceded Bitcoin’s price appreciation on Aug. 1. 

Data from analytics firm Into The Block also revealed that 90% of all ETH supply was in profit. EthHub co-founder Anthony Sassano said there were now only a few ETH holders who bought at $1,000 in 2018. The data didn't include those who already sold at a loss. “Pretty much how a full crypto market plays out,” Sassano said.

Ethereum’s fifth year anniversary is marked by increasing excitement over decentralized finance (DeFi) and the upcoming transition to 2.0. DeFi’s marketcap has hit the $8 billion milestone with a total value of $4 billion locked up in Defi smart contracts, news outlet Decrypt reported. 

Ethereum 2.0, the blockchain’s transition to proof-of-stake (PoS) will mark the end of miners confirming transactions in the network in favor of validators, those who would stake ether to confirm the transactions and secure the network. Ethereum 2.0, which is dubbed Serenity, will allow nodes to process transactions in parallel instead of in a consecutive manner.

ethereum-crypto-bitcoin-ripple-digital-currency-blockchain-getty_large Cryptocurrency Photo: Getty