A perfect ETH storm is brewing
Editor's Note: This article comes fromUnitimes（ID：Uni-times）Editor's Note: This article comes from
, Author: Nick Chong, Compiler: Unitimes_Charles, published with permission.
Ethereum and other cryptocurrencies are almost completely transparent, unlike traditional assets, whose transactions are not recorded in a database shared with the world. Users may not know who made a certain transaction, or who owns a certain wallet address, but all companies and individuals have access to the metadata of every transaction that occurs on the blockchain network.
One of them is Adam Cochran, a venture capitalist in the cryptocurrency field, who realized the importance of on-chain data. In a recent blog post[1] Adam analyzed the top 10,000 Ethereum addresses and concluded that “everything is going to be good for ETH.”
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Ethereum whales are flashing a string of optimistic signals
In this analysis of Ethereum "whales", Adam has 31 key findings, almost all of which can be interpreted as optimistic signals for ETH. Some of the key findings are as follows:
Whales are hoarding ETH. “Existing whales have increased their positions by more than 4% over the past 6 months,” Adam wrote. This equates to new purchases of $550 million worth of ETH. That amount is significant because “it’s comparable to the roughly $600 million in new money that flowed into bitcoin over the course of last year.”
Some of the world's largest institutions, including Microsoft, are also hoarding ETH. “Wallets associated with major players such as JPMorgan Chase, Reddit, IBM, Microsoft, Amazon, and Walmart” are also accumulating ETH, the article reads.
The ETH storage of the exchange has exploded, but the "sell wall" of ETH is being "gnawed" by whales. The analyst observed: “Over the past 6 months, daily ETH deposits to exchanges have grown five-fold, climbing from 11,000 ETH per day to over 55,000 ETH per day.” is a sign of a bear market), but the ETH price has risen instead. This means that big investors are confident in ETH and are hoarding a large amount of ETH.
Miners are also hoarding ETH. With the approach of Eth2.0, miners have begun to hoard ETH: "In the past 6 months, miners have accumulated 1.15 million ETH, worth about 230 million US dollars, and they have never sold." Adam believes that this is because miners are optimistic about ETH A sign of the asset’s future, especially with the Eth2.0 staking mechanism on the horizon."ETH is being used as a "currency". There are currently 16.2 million ETH in "active" circulation, meaning ETH "has flowed through payment processors, payment gateways, or smart contracts (excluding exchanges or multisigs) in the last 90 days.
According to Adam, this shows that ETH is actually being "used a lot as currency and gas fees."
Participants in the Ethereum ICO are very focused: Among the genesis wallet addresses that claimed ETH, "97.4% still hold more than 75% of the ETH they originally purchased." And Ethereum, including Vitalik Buterin, The co-founder has also been holding a lot of ETH firmly.
Based on these findings, Adam concluded that "everything is working in ETH's favor."It’s worth noting that this is Adam’s third comprehensive analysis of the Ethereum ecosystem in the last two weeks. Previously, he said that the Staking upgrade introduced by Eth2.0 may be; and in another article [5], he stated that MakerDAO's stable currency DAI may be the biggest risk in the DeFi (decentralized finance) field.
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More Optimistic Fundamentals
In addition to these bullish on-chain trends, Ethereum has recently received a major fundamental boost: Andreessen Horowitz (a16z), the VC firm known for its early investments in Twitter, Slack, and Instagram, among others, recently announced its first round of funding. Two crypto funds worth $515 million "Crypto Fund II[2]" will be used to invest in crypto networks and companies (Note: a16z launched its first crypto currency fund in 2018, raising a value of over $300 million) .
a16z said the new $515 million fund will invest in five areas within cryptocurrencies and blockchain:
next generation payment
modern store of value
Decentralized Finance (DeFi)
Web 3.0
A new way for founders to monetize through a token model
Venture capitalist Andrew Kang believes that ethereum will likely be one of the biggest beneficiaries of the new fund. The investor interpreted a16z's plan to invest heavily in "next-generation payment" projects as saying that a16z would "invest in ETH as a settlement layer for stablecoins." See the diagram below:
This assertion is likely to be true: a16z’s first fund, “Crypto Fund I,” has invested heavily in the Ethereum ecosystem, including stablecoin projects, MKR, SNX, and DeFi protocols such as Compound and dYdX. Tens of millions of dollars were invested.
It is also optimistic that Eth2.0 has made great progress recently. Ethereum developer Terrence Tsao recently stated that Topaz, the first testnet with Eth2.0 phase 0 mainnet configuration, has broken through 100,000 slots (Note: slot is the length of time to generate a block in Eth2.0, and each slot is 12 seconds), with more than 24,400 validators participating, etc.; at the same time, Schlesi, the first multi-client test network of Eth2.0, has been launched recently and is running steadily , the current Schlesi testnet already supports the synchronization of three Eth2.0 clients, Lighthouse, Prysm and Teku! 🎉
