Perspectives on Ethereum’s performance

How has the growth of Ethereum been? To answer that question, Cointelegraph en Español consulted Lucas Outumuro, senior analyst at IntoTheBlock, who conducted a detailed analysis of what has happened with the price, but also from an „on-chain“ perspective.

A lot has happened at the Ethereum Blockchain since the last time ETH was above USD 400. „Driven by the demand for DeFi protocols and their tokens, the use of the Ethereum network has increased, which has led to an increase in domestic gas prices as well. Just a few weeks ago people were wondering if the growth in DeFi tokens would impact the price of ETH. Well, we can already see the answer with the recent 30% appreciation of ETH in very few days“, explained Lucas Outumuro.

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„Due to all the events that have occurred in the last twelve months, the Ethereum block chain has managed to accelerate its growth and use. By taking advantage of IntoTheBlock’s indicators, we can go deeper into metrics that evaluate the current state of Ethereum compared to a year ago,“ he added later, also noting that „Ethereum is in a much stronger position.

Let’s see then the main points analyzed by Lucas Outumuro:

Directions and profits
The number of ETH addresses with profits has doubled since a year ago.

„ETH holders took advantage of the opportunity to buy below USD 300,“ said Lucas Outumuro.

He also explained that IntoTheBlock’s Historical In/Out of the Money (HIOM) indicator analyzes investors‘ onchain positions based on the average cost of addresses for a token. By comparing variations in HIOM over time, we can determine buy/sell activity based on the number of addresses that benefit at a specific price level.

The last time ETH prices were above USD 300, 13.5 million addresses (less than 50% of all holders) were „In The Money“. Comparing these numbers with those observed when Bitcoin Investor broke through the $300 barrier a few weeks ago „This shows that the number of addresses making money today has more than doubled,“ he said.

This massive increase indicates that millions of new addresses bought ETH below USD 300. In addition, given that the growth in profitable addresses is greater than the increase in the total number of ETH addresses with a balance, it can be established that approximately one million previous ETH holders chose to reduce their average cost of their positions.

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At the time this analysis was shared, 74.09% of the addresses with Ether were making money on their position at a price of $394. „This means that the number of Ether addresses that benefit (32.26 million) has now exceeded the total number of Bitcoin addresses with balance ($3102 million). In other words, more addresses are making money on Ethereum than the total number of addresses that have Bitcoin. However, a higher percentage of Bitcoin addresses are making money on their positions (91.98%) at a price of USD 11,990,“ he explained.

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