A lot has happened in the Ethereum blockchain since the last time ETH was above $300. Boosted by demand for DeFi protocols and their tokens, Ethereum’s network use has increased, causing gas prices to rise. While for a few weeks people were starting to doubt if the growth in DeFi tokens will accrue to ETH, this debate may be settled following ETH’s recent 30% appreciation.
Through all the developments that have happened in the last twelve months — from a pandemic to a Cambrian explosion in yield farming initiatives — the Ethereum blockchain has managed to accelerate its growth and usage. Leveraging IntoTheBlock indicators we can dive deeper into key metrics assessing the current state of the Ethereum blockchain versus a year ago. Spoiler alert: Ethereum’s network is in a much stronger position.
1. Number of ETH Addresses Profiting Double than a Year Ago
ETH holders took advantage of the opportunity to buy under $300.
IntoTheBlock’s Historical In/Out of the Money (HIOM) indicator analyzes investors’ on-chain positions based on addresses’ average cost for a token, in this case ETH. Based on this, the HIOM calculates the percentage and the total number of addresses that are “in the money”, or profiting on their positions on paper. By comparing variations in the HIOM over time, we can determine buying/selling activity based on the number of addresses profiting at a specific price level.
The last time ETH prices were above $300, 13.5 million addresses (less than 50% of all holders) were in the money. Comparing these numbers to the ones observed as ETH surpassed the $300 barrier a few days ago,we see that the number of ETH holders profiting at a price of $310 has more than doubled.