Recent on-chain data indicates that Ethereum has significantly surpassed Bitcoin in terms of user adoption in the past three months, suggesting a positive outlook for ETH.
Ethereum’s Holder Count Increased by 3.3% Over the Past Three Months
Data from the on-chain analytics company Santiment reveals that Ethereum is continuing to outpace Bitcoin in the growth of its total number of holders. The Total Amount of Holders tracks the overall number of network addresses that maintain a non-zero balance.
An increase in this metric signifies that new addresses with balances are being created on the blockchain. This trend may indicate that new investors are entering the market, or that previous investors who sold their assets are now reinvesting.
The metric also rises when current investors split their holdings across several wallets, possibly for reasons related to privacy. Overall, these factors contribute when the indicator increases, suggesting ongoing adoption, which can be a positive sign for the asset.
Conversely, a decline in the metric suggests some holders are liquidating their wallets, potentially signaling a temporary retreat from cryptocurrency investment.
Below is a chart that illustrates the trend in the Total Amount of Holders for the top three cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), over the past several years:
The chart indicates that Ethereum has experienced a continual increase in its number of holders over the past few years, with this upward momentum persisting in the last three months, resulting in an addition of 4 million holders on the network.
In stark contrast, Bitcoin’s growth in the Total Amount of Holders has remained relatively stagnant since 2021. In the last three months, Bitcoin actually experienced a reduction in its user base, losing 50,000 addresses.
With this latest growth, Ethereum now has nearly 127 million holders, compared to Bitcoin’s 54 million, meaning Bitcoin has less than half the number of holders of Ethereum.
The leading stablecoin, USDT, has around 6 million addresses with balances, marking an increase of about 230,000 in the past three months.
Bitcoin’s stagnant trend in Total Amount of Holders suggests it may be facing challenges in user adoption, while Ethereum continues to draw in new users, likely due to its diverse ecosystem.
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