Adam Cochran, An analyst who predicts the use of Ethereum 2.0 will trigger a new upward trend, started Tweetstorm of 109 articles on April 29 Revealing its results from a manual review of Ethereum’s 10,000 largest wallets.
The conclusion of the research, which is also presented in a blog post, is: For cryptocurrency number two by market cap, it looks incredibly optimistic.
Distribution to rival Bitcoin
Cochran’s first point of contact is the distribution of ether (ETH) between the major wallets. This is something that many critics point to as evidence of centralized control in front of the mine, but research suggests otherwise.
While around 17% of the ether (16.6 million ETH) is held by only 10 addresses and the top 10,000 addresses contain around 94% of the available tokens, this is distorted by the fact that much of the coin is there used and maintained in intelligent contracts.
Removing this from the equation shows this Ethereum’s top 10,000 addresses actually contain around 56.7% ETH; comparable to 57.44% of Bitcoin (BTC) held by top 10,000 wallet addresses.
In contrast, 16 addresses contain more than 50% XRP, 300 more than 50% Litecoin (LTC) and just over 1,000 addresses contain more than 50% Bitcoin Cash (BCH), Bitcoin SV (BSV) and Tron (TRX):
“This means that Ethereum and Bitcoin are in a league of their own in terms of distribution capital … No other currency falls in the same range as their payout.”
Also ETH is used 440 times more often than Bitcoin for transactions. 16.2 million ETH have gone through a payment processor, a gateway or a smart contract in the last 90 days. Only 0.36% of Bitcoin has gone through a payment processor in the past two years.
Accumulation and hoarding
Another result is that the whales have accumulated down in the market and were not alone. Existing whales have expanded their position at ETH by more than 4% and brought $ 550 million to the market in the past six months.
By comparison, Bitcoin has had $ 600 million in capital inflows over the past 12 months, across all accounts, not just whales.
There was also an influx of new ETH whales, with a significant number of new purses among the top 10,000 coming from Fiat ramp exchanges serving major customers.
Some of the miners have also started to aggressively accumulate ether, possibly to prepare to turn mining into staking.
In addition, the founders of Ethereum, Genesis buyers and even Vitalik Buterin still own a large part of their original properties. 97.4% of Genesis buyers in the top 10,000 list whose wallets still owned more than 75% of their original ETH purchase.
A closer look at the stakeout predicted a 17-20% performance for first phase 0 users, which gradually declined before finally leveling off to 4 to 6% once ETH 2.0 was fully implemented and negotiable.
Investors can also be encouraged as Cochran predicts healthy starting yields as soon as ether switches to proof-of-stake or proof-of-stake:
“ETH 2.0 is expected to initially return 12 to 17%.”