On the morning of May 6, the price of Ethereum (ETH), the world's second-largest encrypted digital currency, exceeded US$3,500, setting a new record high. A few days ago, after breaking through the US$3,000 mark, the price of Ethereum was repeatedly set high. Bitcoin is undergoing repeated turbulence, and the strong performance of Ethereum, which has always been "losing everything," is surprising.
Today, the total value of Ethereum is as high as US$400 billion, which is about 40% of Bitcoin. At this time last year, the gap between the two was as high as seven times. It should be noted that Ethereum's currency holding addresses are excessively concentrated in large accounts, which hides a lot of risks. The reporter found that the number of Ethereum's entire network holding currency addresses is as high as 150 million, but the top 50 addresses hold 31% of Ethereum. In addition, as of May 6, 7 of the top 10 mobile addresses have sold Ethereum in a large amount in 7 days, totaling about 1.29 million, or have cashed in more than 4 billion U.S. dollars. A year's increase of more than 16 times Ethereum "demonstrates" Bitcoin In the past few days, the "big guy" Ethereum has launched a "rising and rising" market, which has repeatedly set the highest price in history. According to the non-small app of encrypted digital currency market software, at 6 a.m. on May 6, the price of Ethereum broke through 3,500 US dollars, setting a new record high. Before this, the price of Ethereum has continued to rise for many days after breaking through the $3,000 mark on May 3. As of the morning of the 7th, the price of Ethereum was US$3,529, and the total currency value exceeded US$400 billion. The increase in the last week was nearly 29%, and the increase in the last year was more than 16 times, reaching 1633%. "The encrypted digital currency Ethereum (ETH) issued by the blockchain network protocol layer is the basis for the normal operation of distributed applications." William Li, the chief researcher of Ouyi OKEx Research Institute, told the reporter of "Securities Daily" that most of the blockchain network The value is concentrated in the network protocol layer (Ethereum network), and a small part of the value is distributed in the application layer (distributed applications). Taking distributed finance as an example, 90% of DeFi projects are concentrated in the Ethereum network. The prosperity of DeFi directly drove the market demand for ETH and pushed up the price of ETH. William Li believes that from the news, Canada launched three Ethereum ETFs at the end of April; the European Investment Bank also reported that it would issue digital bonds on the Ethereum network. This news is directly beneficial to the increase in the price of ETH. "The ratio of Bitcoin to Ethereum has hit a new high this year, which means that the bull market in the crypto market has entered the second half." Huoxun Finance founder Long Dian analyzed to reporters that the superposition of the bookmaker's hype effect and the psychological effect of retail investors has resulted in Ethereum. Skyrocketed. On the one hand, affected by capital rotation, early profitability, and speculation funds for the early purchase of Bitcoin began to seek new concepts and targets. For Ethereum, which has just broken through new highs, speculation funds further promoted the price increase. On the other hand, the bull market in the crypto market attracts more and more newcomers to the market. Most new users take a wait-and-see attitude towards the high price of Bitcoin. Ethereum, which seems cheaper per unit, has become the first choice for new retail investors. The reporter found that the fiercely rising Ethereum is rapidly closing the currency gap with Bitcoin. Non-small apps show that at the same time, the current price of Bitcoin is about 57,000 U.S. dollars, and the total currency value is 1 trillion U.S. dollars, which is about 2.5 times that of Ethereum. A year ago, at the beginning of May last year, the total currency value of Bitcoin reached 169 billion U.S. dollars, and Ethereum was 23 billion U.S. dollars. The difference between the two is more than seven times. From the perspective of market share, Bitcoin currently accounts for about 47% of the total value of encrypted digital currencies globally, while Ethereum accounts for 18% and is on the rise. However, William Li analyzed that "Bitcoin's position as the Moutain of the encrypted digital currency market is difficult to shake. It is currently in the stage of the encrypted digital currency bull market, and various altcoins have generally risen, which will reduce the market share of Bitcoin; in the future; The market enters a bear market stage, and Bitcoin's market share will increase again." Several large households collectively reduce their holdings Sell 1.29 million Ethereum The reporter observed that while Ethereum has repeatedly set new highs, many big players have taken the opportunity to sell large amounts of Ethereum. Ethereum's currency holdings are relatively concentrated, and a large number of Ethereum is concentrated in a few large accounts. The non-small app shows that the number of Ethereum holding addresses is 150 million. The top 10 addresses hold 19% of the coins, and the top 50 addresses hold 31% of the coins. It is reported that the currency holding address refers to the address with a specific token, similar to the account name in Alipay and bank cards. "Generally speaking, for a certain currency, the more dispersed the currency holding addresses, the more stable and safer it is." Ding Feipeng, director of the criminal department of Beijing Shangguang Law Firm, told a reporter from Securities Daily, but only from The analysis of the currency holding address is not enough. It depends on whether there are third-party platforms such as exchanges and wallets in the previous currency holding addresses. These platforms hold many retail encrypted assets, which will lead to the "illusion" of relatively concentrated currency holdings... "About three years ago, in June 2018, the top 10 Ethereum addresses held only 10% of the coins. Among them, except for the "cold wallet" that has not been moved from the beginning to the present, the other addresses have one in the past three years. The process of'acquisition'. This shows that the risk of manipulation of the price of Ethereum has increased." Fu Rao, executive director of the International Institute for New Economics, told reporters. It is worth noting that as of May 6, the large number of Ethereum sold in the seven days was as high as 1.29 million, or more than 4 billion U.S. dollars have been cashed out. The non-small app shows that as of May 6, 7 of the top 10 mobile addresses have reduced their holdings of Ethereum within seven days, and the total amount of reductions reached 1.29 million, which is calculated based on the opening price of 3,300 US dollars on May 6. Seven large companies may have made a profit of 4.3 billion U.S. dollars. Fu Rao believes that the seven primary mobile addresses sold a lot of Ethereum, which shows that the "bookmaker" of Ethereum believes that the price of Ethereum is now overvalued. However, the top 10 addresses, after years of "acquisition" and have plenty of chips in their hands, may not be "escape from the top." "The recent massive sell-off of mobile addresses may not be because big players are cashing out. There may be reasons for third-party institutions, such as promotion of hot projects." Ding Feipeng reminded me that encrypted assets are an emerging investment product, with risks and opportunities coexisting. Ordinary investors should fully assess their risk tolerance before investing and invest rationally.
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