The vast majority of the circulating Ethereum (ETH) supply is now in profit, according to leading blockchain intelligence firm Glassnode.
As reported by the popular on-chain market intelligence company on Twitter, more than 90 percent of the circulating supply of ether was purchased for less than the current ETH market price. As of press time, one ether coin is currently trading at $388.08.
The total circulating supply of the second-leading digital asset is 112,039,892 coins and the market capitalization of Ethereum is currently $16,036,462,547, as per data sourced from CoinMarketCap.
Over 90% of the circulating #ETH supply is now in a state of profit, i.e. the current price is higher compared to the price at the time the coins last moved.
Last time this we saw this level was in Feb 2018 when the $ETH price was at $925.
— glassnode (@glassnode) August 3, 2020
Glassnode also noted that we haven’t seen such a large percentage of profitable ETH since February 2018. At that time, one ether was trading at approximately $925 — roughly 138.35% higher than the current price.
The first and foremost altcoin is up more than 200 percent, year-to-date.
Ethereum 2.0 driving demand for ether
Ethereum’s strong 2020 has been driven primarily by anticipation over the future launch of Ethereum 2.0 — which will transition the network’s consensus algorithm from proof-of-work to proof-of-stake. Whereas the former relies on miners to validate transactions in the blockchain, the latter relies on depositors. This means that those with an actual stake of ETH in the network’s security will be the ones to receive block rewards.
In order to become a validator in Ethereum 2.0, users will reportedly need to stake 32 ETH — currently valued at $12,419.
DeFi mania defining Ethereum’s value
Another primary driver of Ethereum prices increases is the ongoing mania surrounding decentralized finance, or DeFi — a segment of the blockchain/cryptocurrency industry that offers non-custodial financial products, many of which are boasting extremely-high interest rates.
There are currently 4.282 million ether coins locked up in DeFi, according to data sourced from DeFi Pulse. Exactly one month ago, that figure stood at 3.426 million coins — meaning the current total is almost exactly 20% greater than it was 30 days ago.
Meanwhile, the total amount of USD value locked in DeFi amounts to $4.26 billion.
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