Only 40% of Ethereum’s circulating supply changed hands since last year while more than half didn’t move much.
Glassnode has recently published its “HODLwaves” charts which offer a chronological breakdown of the on-chain transactions’ velocity. This table shows that the largest segment of on-chain activity occurred between the period of 12 to 24 months ago. This activity involved roughly twenty eight percent of Ether.
The charts further suggested that many crypto whales spent accumulating Ether prior to the project’s ETH 2.0 overhaul. (The individuals that hold large amounts of cryptocurrency to manipulate currency valuations are called whales in the crypto world). Phase 0 of this overhaul is likely to execute in the coming months.
Since October 2017, almost 20% of tokens have not moved. Analysts are interested to see what, if any, of this percentage is moved into staking with the rollout of phase 0.
It seems that the impending launch of Phase 0 has ignited a boost in the short-term velocity of on-chain transactions. This fact is backed by the share of Ether that has not moved in the past 24 hours. There could be seen a small yet steady and continuing increase from less than 0.5% in January and February. Resultantly, the average rose to an average of more than 1% in early September.
The weekly velocity has also seen a marked increase this year. It emanated from 1.5% at the beginning of this year to reach almost 5% in the months of July and September. At the same time, monthly and quarterly transfers have also seen a steady increase since June 7.
In stark contrast to this, Bitcoin has seen a big decrease in its short-term velocity. This decrease has largely come about in the aftermath of the pre-halving hype. In March 2020, the Black Thursday crash also worsened the conditions for Bitcoin. The short-term, on-chain velocity’s weekly transfers have decreased considerably. For example, it was recorded at 6% in the month of February however it went down in between 3.5% and 4% in September.