- Ethereum has significantly outpaced Bitcoin in terms of wallet growth, indicating growing investor interest and adoption.
- Despite its dominance, Bitcoin has seen a slight decline in the number of holders, potentially due to market conditions and concerns about energy consumption.
- Tether, a stablecoin, has experienced a significant increase in the number of holders, reflecting its growing utility in the cryptocurrency ecosystem.
Ethereum has surpassed Bitcoin in terms of wallet growth. According to Santiment’s latest insights, ETH’s holder base continues to climb steadily whereas Bitcoin posted a slight decline in the total number of holders over the past three months. The divergence in wallet growth highlights ETH’s growing popularity and utility as a preferred platform for decentralized finance (DeFi) and other applications.
As seen in the chart, Bitcoin’s total amount of holders stood at 54.18 million on September 4th, 2024, representing a slight dip of 0.1% compared to three months ago. On the other hand, Ethereum’s holder count has increased to 126.96 million, marking a substantial increase of 3.3% during the same period. Stablecoin giant Tether has also recorded a significant growth in its holder base. In just three months, the total number of USDT holders has risen to 5.99 million, representing a 4.0% increase.
The disparity in wallet growth between Ethereum and Bitcoin indicates several factors. Ethereum’s expanding ecosystem, driven by the rapid spread of decentralized applications (dApps) and smart contracts, has attracted many developers and investors. Additionally, the Shanghai upgrade, implemented on April 12, 2023, unlocked staked ETH, further fuelling interest in the network.
Ethereum and Bitcoin’s Evolving Dynamics
Bitcoin, on the other hand, has faced challenges in recent months. The prolonged market downturn and concerns over its energy consumption have dampened investor sentiment. However, Bitcoin’s status as the first and most well-known cryptocurrency continues to attract a dedicated following.
The divergence in wallet growth between Ethereum and Bitcoin highlights the evolving dynamics of the cryptocurrency market. While Bitcoin remains the dominant cryptocurrency by market capitalization, Ethereum’s growing popularity and utility as a platform for decentralized finance (DeFi) and other applications could challenge its supremacy.
Pricewise, ETH has fallen roughly 25% against Bitcoin’s $56,334 since the start of 2024 hitting the lowest level in almost four years. Market experts predict a bearish outlook for the leading altcoin in the coming weeks, particularly as the likelihood of Federal Reserve interest rate cuts in September increases.
