Traders prefer Ethereum to Bitcoin: Chainalysis
Date: 2023-08-25 Author: Karina Ziganova Categories: BLOCKCHAIN, CRYPTO PAYMENTS
Chainalysis analysts named Ethereum (ETH) the most actively traded cryptocurrency.
A recent report by Chainalysis states that as of July 2023, the number of Ethereum wallets has grown to 79 million, compared to 50 million bitcoin addresses. thousand wallets. Meanwhile, 50% of the ETH in circulation is concentrated in just 131 addresses.
ETH holders have become more active
Between Q3 2020, often referred to as the "DeFi summer", and Q1 2022, Ethereum holders were more active than bitcoin traders. According to Chainalysis, they transacted ETH at least once a month and consistently outperformed BTC during the 2021 bull market.
On the other hand, Bitcoin holders tend to have a long-term strategy and most of the supply is in wallets that do not transact frequently. Statistics show that since 2020, only 20% of all BTC are stored on exchanges.
Staking Pools Boost Ethereum Liquidity
Liquid staking platforms such as Lido Finance keep Ethereum liquid while offering users the long-term benefits of staking. This is very important to protect the price of an asset from the turbulence of the crypto market.
Lido issues a derivative stETH token for every ETH staked. Users, in turn, can trade it or use it to generate additional income through various strategies in DeFi protocols.
Interestingly, the USDC stablecoin also consistently ranks high in the list of tokens owned by active traders. This may be due to the widespread use of the ETH/USDC pair on decentralized finance platforms.
