As the price of Ethereum ($ETH), the second-largest cryptocurrency by market cap, surged to touch the $1,400 mark amid a broader cryptocurrency market rally, on-chain data has shown that the shark addresses have been “aggressively” accumulating cryptocurrency.
Data from on-chain analytics firm Santiment shows that wallets with between $100 and $10,000 ETH, equivalent to $138,000 to $13.8 million at the time of writing, have been hoarding the cryptocurrency since early November, to the point that around 3000 new shark addresses were created. .
According to the firm, a total of 48,556 shark addresses now exist, marking the highest level on record since February 2021. It’s worth noting that shark addresses are associated with large holders, with the largest cohort known as the whale cohort.
As CryptoGlobe reported, the the cryptocurrency community is divided on whether $ETH is a better long-term bet than $BTC. While BTC is primarily used as a store of value and medium of exchange, ETH has the additional use case of powering smart contracts on the Ethereum platform, making it an attractive investment for those who believe in the potential of decentralized applications. and the widest. adoption of blockchain technology.
ETH also has a strong developer community and support, which can provide a level of stability and security for investors. However, BTC also has a strong developer community and has proven to be a resilient and secure cryptocurrency over the years. According to Bloomberg Intelligence, Ethereum’s bullish performance against Bitcoin has not been affected by the 2022 deflation in most risk assets and may be gaining ground.
Meanwhile, as reported, the prices of the liquid staking tokens Lido Finance ($LDO) and Rocket Pool ($RPL) have been picking up in recent weeks as Ethereum withdrawals staked on the network get closer to being a reality.
Since the Beacon Chain launched, Ethereum token holders have been able to stake their $ETH on the network in exchange for fees, which are awarded to them for validating transactions on the network. However, the funds cannot be withdrawn yet. Ethereum mainnet merged with Beacon Chain at the end of last year.
To become a validator on the Ethereum proof-of-stake network, users must stake 32 ETH, which at the time of writing is worth approximately $42,400.
Liquid betting solutions like Lido Finance and Rocket Pool allow users to bet significantly less and maintain their liquidity by issuing tokens that represent the funds wagered. Lido, for example, issues stETH for every ETH wagered.
Featured Image via Unsplash