According to Glassnode, there are more than 15.1 million Ethereum available to accumulate even as demand for ETH grows before the much-awaited protocol conversion to proof-of-stake. At a periodic high, supply amounts to nearly 40 million. Even so, the active Ethereum supply has dropped to its lowest level in 17 months.
The active supply of Ethereum has dipped to its 17-month low
Last Active Ethereum Supply 6 to 12 million | Source: Glassnode Studios
If the demand for ETH rises higher during a bearish period, the cryptocurrency price sometimes moves north, as shown in the chart above. Glassnode fetches bridge-side data from another graph, called HODL Waves. The unique index that reflects the ratio traders/investors are holding Ethereum. The increase in this number means that sales sentiment is not beneficial in the long run. On the other hand, a solid downtrend.
Data shows that many investors accumulated ETH in 2019. It currently accounts for more than half of the existing supply of the cryptocurrency that has not been altered in the past 12 months. It points out that less available stock during the days leading up to Ethereum’s proof of stake this year.
Each colored band shows the percentage of Ethereum in existence that was last moved within the time period denoted in the legend | Source: Glassnode
Anthony Sassano, the co-founder of EthHub, said:
“With the ETH2 phase 0 approach, it will be interesting to see how much this percentage comes down by as Ethereum OG’s move their stash into staking. I’m particularly curious to see if any of the coins in the 5+ years category move.”
On the supply side alone, Ethereum’s prospect of hitting new annual highs is higher. As more and more tokens are out of circulation and demand among looming traders/investors grows – partly when they use ETH to stake or hold it as a hedge against inflation – then ETH/USD could rise even further.
So far, Ethereum has acted as stories in favor of the bulls. In fact, ETH price is up 328% from its mid-March low – and with the same fundamentals, it could be even higher for the year.
You can see the Ethereum price here.
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