Over the past couple of weeks, Ether (ETH) and a few other cryptocurrencies have been seeing sideways movements that many market analysts attribute to the Coronavirus outbreak.
However, data from a renowned crypto data provider, Santiment, indicates that the market condition has triggered buy mode for Ether, as the market rebounds gradually.
There has been a change in the supply distribution pattern of Ether. The top 100 wallets holding large quantities of ETH are currently buying more of the cryptocurrency, despite the ongoing consolidation in price.
As the top holders are starting to accumulate higher percentages of the total Ether supply, it reportedly signals that the cryptocurrency is undervalued at its current price. This activity should potentially result in somewhat uptrend for ETH, although these price rises take a bit of time after these accumulations.
At the time of writing, ETH sees a positive 1.42% price change to be worth $229, with a total market cap of $25,217,212,764, according to Coinmarketcap. Those who own the most stake in ETH (and other respective tokens) believe it’s a great mid to long-term hold play.
Since the supply distribution pattern of ETH is being dominated by wallets holding large quantities of the crypto, it is generally assumed to be a good sign both for wallets with smaller balances and the whales.
Is ETH Losing Real Usage?
Notably, supply distribution gives a clearer insight into the wealth distribution of cryptos and looking at the data on the other way round; it further indicates that ETH may not be getting real usage due to the current market condition, which is why it is not being held more in the hands of individual users.
As of 2016, the percentage of supply of the cryptocurrency held by relatively small addresses has been steadily increasing. In the same year, the larger addresses held 60% of the whole amount, but it dropped in February 2020 to 40%, according to a separate report by CoinMetrics.
Comparing both data, one can clearly notice that the changed hands in the supply of Ether are heavily influenced by the recent market condition, while others (Ethereum bulls) who have faith in ETH takes advantage of the situation to buy and wait for the market to recover fully.
