More People are Buying Ethereum and this On-Chain Metric Confirms the Trend

Ethereum (ETH), the world’s largest decentralized blockchain network is attracting more small-scaled to medium-sized retail buyers according to on-chain trends. Data from Glassnode analytics shows that the Ethereum number of addresses holding 32+ coins has just reached a 5-month high of 109,188, confirming an accumulation trend that peaked about a week ago.

Despite the current growing trend in the accumulation of Ether, the total addresses holding at least 32 coins have plunged remarkably in the past six months. The Ethereum accumulation is reflected in the current price of the digital currency which has surged by more than 27.6% in the past 14 days according to data from Coingecko, the digital currency has inked a notable 822.5% in the past year.

The coin is changing hands at $3,561.58 at the time of writing, atop a 2.1% growth in the past 24 hours.

Ethereum Accumulation is Inevitable

The accumulation of Ethereum across the board is inevitable when the robust ecosystem surrounding the open-source blockchain network is factored in. While there have been a huge emphasis on decentralized finance (DeFi) opportunities, Non-Fungible Token (NFT) offerings are not slowing down.

Though Ethereum has welcomed a number of competing blockchain protocols that are also offering a mix of innovative DeFi and NFT projects to the broader community, the Ethereum network is arguably the dominant hub for these revolutionary innovations. With the demand for NFTs, there is a corresponding demand on Ethereum coins with which to mint the NFT. This trend has shown no sign of slowing down in the near future.

The Ethereum ecosystem is also fast approaching the emergence of the Ethereum 2.0 model, a system that seeks to migrate the entire network from the energy-intensive Proof-of-Work (PoW) model to a more sustainable and scalable Proof-of-Stake (PoS) model. 

The PoS protocol will function with users staking their coins, an operational model that is already underway. A total of 32 ETH is currently required as a deposit to be a validator for the PoS protocol and also re-affirms the potential reason why more investors are stacking up on the Ether coin.

The post More People are Buying Ethereum and this On-Chain Metric Confirms the Trend appeared first on Coingape.

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