Holding Ethereum More Profitable Than Bitcoin - Analysis Report.

Holding Ethereum More Profitable Than Bitcoin - Analysis Report.

2020-07-30 | Mike Hallen

Holding Ethereum More Profitable Than Bitcoin - Analysis Report.

With Ethereum [ETH] recent price hike above $300 USD, there are now more ETH addresses in profit than the entire number of addresses holding any amount of Bitcoin [BTC].

Blockchain statistics indicate that the entire number of ETH addresses within the green is 31.86 Mln, while the entire number with a Bitcoin balance at all is 30.83 Mln.

Holding Ethereum More Profitable Than Bitcoin

The last time Ethereum [ETH] was priced over $300 USD was a year ago, and on-chain metrics have improved vastly since then. The findings, as first reported within the Defiant, indicate that many new addresses loaded up on of ETH below $300 USD. Many of them would have got in below $200 USD as the asset languished at low levels for March and April.

Earlier in July last year, when ETH prices reached a high almost like today’s price, just 13.5 Mln addresses, or less than 50%, were making a profit. The figures have been derived from a Historical In/Out of the Money [HIOM] indicator that analyzes on-chain positions based on the average token cost for a given address.

The number of Ethereum ‘hodlers’, or those holding the asset for over a year, has also hiked by 10 Mln within the past year.

Bitcoin Tokenized Onto The Network

Another solid fundamental for the growing use cases of Ethereum is that the amount of Bitcoin that has been tokenized on the network.

Tokenizing, or wrapping, Bitcoin permits the asset to be utilized in decentralized finance and with apps that are supported by Ethereum and the ERC-20 standard. With the explosive growth of DeFi and yield farming opportunities, BTC holders haven't wanted to miss out on the action.

As a result, there are now above 20k BTC tokenized on Ethereum. The figure equates to $223 Mln worth of BTC at today’s prices consistent with the btconethereum.com. As developer Josh Stark posted, that’s 20x times as much Bitcoin as locked in Lightning and 8x times more than in Blockstream’s Liquid.

As DeFi continues to grow it’s likely the quantity of tokenized Bitcoin will increase.

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