What Does the Latest Crypto Crash Mean for Ethereum?
Crypto investors are accustomed to market crashes. Smart investors cash out at the right time and invest in the downtrend, while those experiencing fear, uncertainty, and doubt (FUD) contribute to the market collapse by panic selling.
The latest crypto crash has erased over $1 trillion in market value. Market-definers Bitcoin and Ethereum plummeted to lows not seen in months and most altcoins have recently suffered greatly. Of course, several factors have contributed to the latest market crash, but we won't dive into them.
Instead, we will explore the consequences of the market plummet. How are investors reacting to the meltdown?
Ethereum is a mixed market
According to Glass node metrics, the total Ethereum value in the ETH 2.0 Deposit Contract reached a five-month low of roughly $20.9 billion. The previous low of roughly $21.2 billion was observed on Sep. 21.
While this statistic represents one position, the number of users with at least 0.01 Ethereum in their crypto wallets has reached an all-time high (ATH) of nearly 22 million.
The statistics appear to indicate that holders with large Ethereum investments cashed out at the right time driving the market price down and leading a number of new investors to add Ethereum to their holdings at a relatively advantageous discounted price.
Investors are keeping an eye on Open Interest in Perpetual Futures Contracts as well, as it reached a one-month high of nearly $65 million at crypto exchange Kraken. Notably, the previous one-month high was on Jan. 22. This indicates an increasingly upward trend.
It should be noted that the number of Bitcoin addresses with over 100 Bitcoins is at a three-month low of almost 16,000. The previous three-month low was on Jan. 22 (surprise surprise). This indicates an increasingly downward trend.
A correlation between the last two statistics? I think so. Folks, Ethereum is here to stay and 2022 will be a good year for the crypto asset. Hold tight!
Author: Surajdeep Singh
Surajdeep Singh has been working in the tech sphere as a marketing guru and journalist for over 6 years, with his speciality laying in blockchain and Web3. He has donned several hats in marketing and journalism over the years and worked with many reputable brands. Feel free to reach out to him on LinkedIn!