Approximately 53% of Ethereum (ETH) addresses are currently lost as the volatility in the broader market continues to burden ETH prices.
The second largest cryptocurrency by market capitalization tackles a challenging era exacerbated by macroeconomic challenges.
Most Ethereum addresses suffer loss
In a recent post about X (formerly Twitter), Cryptoran shared that less than half of Ethereum addresses are profitable.
“47% of addresses that hold ETH are profiting at their current market price of $1,900,” the post read.
In contrast, Bitcoin (BTC) looks at 86% of profit holders, showing relative stability compared to Ethereum. Meanwhile, Bitget Token (BGB) leads the pack with an impressive 95% of current profitable holders.
Tokens ranked by percentage of profit holders. Source: x/cryptorank
Nevertheless, Ethereum holders have entered losses due to a fall in prices. Over the past year, ETH prices have fallen 52.8%, and since December 2024 its value has steadily declined.
Furthermore, as fears of a recession escalated, altcoins fell to unseen lows since late 2023. This decline led to a wave of sales, with traders rushing to minimize losses. As previously reported by Beincrypto, the Ethereum whales have offloaded important ETH holdings to avoid liquidation.
The ETH struggle is further highlighted by a decline in performance over the past week. The broader cryptocurrency market saw a decline of 11.0%, but Ethereum faces greater challenges, experiencing a decline of 13.5%.
In addition to the prices, Ethereum Exchange-Traded Funds (ETF) draws similar pictures. Data from the SOSO values indicate that ETF has seen continuous withdrawals over the past two weeks. Furthermore, on March 11th, the total net outflow was $21.5 million.
Nevertheless, Ethereum co-founder Joseph Rubin remains optimistic about the future of crypto.
“After the recent shakeout and the required reset, I probably couldn’t have been more bullish,” he posted.
While acknowledging recent losses, Rubin believes that the actions of the US government will help the country become more focused and agile. He sees this as an opportunity for distributed protocols like Ethereum to operate and flourish more freely. Lubin predicts 2025 will be a pivotal year for the crypto space.
In particular, today, positive political developments have contributed to a small recovery in the crypto market. ETH also rose 0.12% over the past 24 hours to $1,899.
Ethereum price performance. Source: Beincrypto
Aside from price movements, supply for Ethereum exchanges indicates a drop in sales pressure. Ethereum’s exchange reserves have fallen to their lowest levels in a few years, indicating that fewer holders willing to sell their assets.
This could reduce downward pressure on prices and set future stages of growth.
Supply of Ethereum on the exchange. Source: Cryptoquant
“This is usually a major bullish indicator. Comes with a short squeeze!” an analyst wrote to X.
Ethereum faces major challenges, but recent trends suggest possible recovery. It remains to be seen whether this will be a permanent trend or if it will remain in a short-term state.
