Ethereum price has been performing well on the market in recent times and a lot of fundamentals support its growth. A recent report released by Coin Metrics reveals that, Ethereum is becoming widely distributed and this could be a direct result of an increase in demand for the coin.
The latest of the network analytic provider’s “State of the Network” report highlights that Ethereum is going through a strong run as it leads some of the key technical metrics.
The second largest crypto’s realized capitalization surged by 3.6% over the previous week. Similarly, its hash rate and mining difficulty also surged by 3.7% and 3.6% respectively. All these indicators suggest good health for the network.
Furthermore, the crypto market and network analytics firm noted that Ethereum is becoming more distributed over time. This can be perceived as a positive sign of higher utility and growing interest among market participants.
The circulating supply of ETH tokens is spreading through more holders, although they were initially distributed through a crowdsale. The percentage of supply held by relatively small addresses has also been increasing steadily. Coin Metrics noted that the addresses with balances over $10 worth of ETH surged by 8% over the past 7 days.
The Coin Metrics report stated that,
“The percentage of supply held by addresses with the largest balances (at least 1/1K of total supply) peaked at about 60% in July 2016. The amount held by these large addresses saw a significant decline as the ICO bubble deflated throughout the end of 2017 and into 2018. As of February 2020, these addresses hold about 40% of total ETH supply.”
An economist and technical analyst, Alex Kruger, recently noticed that the average ETH trading volume during the past week has quadrupled since the second half of 2019.
As the demand for ETH continues to rise, it would hopefully have a positive impact on the coin’s price.
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