Ether Equals Bitcoin in Holder Distribution, ProgPoW Talks Back
With Ethereum 2.0 set for launch in coming months, a manual auditing of the top 10,000 Ethereum addresses to learn about liquidity, profitability, and market manipulation among others by a Partner at Metacartel Ventures has revealed through a data set that Ethereum’s Ether is as equally distributed as Bitcoin when compared based on individual holders.
The implication of Adam Cochran’s findings is to suggest that the two top networks are in a similar class and no other coin comes close in terms of distribution. His audit claims that Bitcoin’s top 10,000 holders hold 10.54 mln BTC (57.44%) and Ethereum’s top 10,000 holders control 57.2 mln ETH (56.70%). Other networks are not as fluid in their distribution though, with only 16 addresses holding 55.2% of Ripple (XRP); 1,100 addresses hold 56.8% of Bitcoin Cash (BCH); 1,250 addresses hold 55.6% of Bitcoin SV (BSV); 300 addresses hold 54.3% of Litecoin (LTC); and 1,031 addresses hold 51.1% of Tron (TRX).
Highlighting this understanding adds to effort to ensure the success of Ethereum 2.0 which has been said to have the potential to improve the performance of the blockchain network significantly by lowering transaction fees, improving the throughput of transactions, and increasing reliability. Ethereum 2.0 could also prove to be the largest economic shift in the crypto space and society once in motion, Cochran noted.
When it comes to being money, ETH is used 440x more than Bitcoin for transacting.
ETH is money.
Plain, simple, and re-tweetable. pic.twitter.com/2rAy84k3zn
— Adam Cochran (@AdamScochran) April 29, 2020
Key among the data he produced point out that the top 10,000 Ethereum wallet addresses represent 91.7 mln ETH (57.2 mln ETH or 56.7% when calculated without consideration for smart contracts) with roughly 17% of it being held by 10 addresses which are supposedly smart contracts in whose usage lies the network’s supposed main purpose. He submits that ETH is actually being “heavily” used as money and gas as seen in the 16.2 mln ETH in “active circulation” – have passed through a payment processor, payment gateway or smart contract (excluding exchange and multisig) in the last 90 days. It fares far better in this regard than Bitcoin where 57% of its coins hasn’t moved in over a year (21% of which has not moved since 2015) and only 0.36% of BTC has been through a payment processor in the past two years.
Existing whales have bought more ETH in the past six months than all new BTC inflow last year to increase their position by making more than $650 mln in new ETH purchases, the audit finds. This couples with his claim that the past six months have also seen around 20% of miners accumulate and hoard 1.15 mln ETH (or $230 mln) at “aggressive levels” on top of ETH members in the top list who still hold most of their funds – on average dev grant and founders still hold 56.4% of their original genesis ETH. Adding all these to the roughly 9% of total available ETH that is reportedly inaccessible to leave the network with only around 100 mln ETH in actual circulation, the author somewhat builds a case for a reducing supply of ETH in coming months which will serve to increase the asset’s value as a main feature of the Ethereum 2.0 launch – the staking returns – sets in.
Meanwhile, from the proposed launch of Ethereum 2.0, to the Chinese court recognizing Ethereum as a property and the network’s inclusion in the Blockchain Service Network, the positivity going Ethereum’s way presently is still being trailed by the ProgPoW discussion.
On Saturday May 2, Ethereum core devs are likely to meet again to debate ProgPoW again marking the 19th month since the discussion over the topic started despite a lack of consensus for its approval in the Ethereum community.