Glassnode: Only 39.6% of Ether changing hands over the past 12 months
According to Glassnode, more than half of Ethereum’s circulating supply has remained unchanged in over a year, with only 39.6% of ETH changing hands over the past 12 months. Specifically, roughly 28% of Ether last moved between the past 12 and 24 months, comprising the largest on-chain activity segment.
~60% of all ETH hasn’t moved in 1+ years.
With eth2 phase 0 approaching, it’ll be interesting to see how much this percentage comes down by as Ethereum OG’s move their stash into staking.
I’m particularly curious to see if any of the coins in the 5+ years category move 👀 pic.twitter.com/9H38dYAHDq
— Anthony Sassano | sassal.eth ⛽ 🏴 (@sassal0x) October 14, 2020
Multi-year Ether accumulation has been growing in 2020, but things may soon change with the launch of staking
There are a lot of whales spent 2019 accumulating ETH ahead of the project’s ETH 2.0 overhaul – phase 0 is expected to begin in the coming months, allowing users to bet their Ether for the first time. . Approximately 20% of tokens have not moved since before October 2017, with analysts watching to see if a percentage of this stakes go to staking on phase 0 rollout.
The upcoming launch of Phase 0 appears to have caused a recent increase in the short-term speed of on-chain transfers, with the share of Ether moving over the past 24 hours rising from less than 0.5% in January and February to an average of more than 1% in early September.
The weekly rate also increased from 1.5% at the beginning of the year to 5% in July and September, while the same monthly and quarterly transfers have been steadily increasing since June.
By contrast, Bitcoin’s short-term on-chain speed has dropped largely since the hype before halving and the ‘Black Thursday’ incident in early 2020, with weekly remittances down from almost 6% supply in February was down from 3.5% to 4% in September.
Coinbase implemented a Layer-2 (L2) scaling solution to enable faster and cheaper Ethereum transactions
An announcement on Oct 14 revealed that Coinbase Wallet is integrating with Optimism’s Optimistic Rollup testnet. This will not be on the exchange itself, but the non-custodial wallet and dApp browser to enable users to view balances and transact on the Optimistic network.
The company stated that it was excited to do its bit to help Ethereum scale:
We’ve integrated native support for the @optimismPBC testnet, to help early adopters test Optimistic Rollups on Coinbase Wallet. Rollups offer fast, low fee, scalable dapp transactions.
We’re excited to do our bit to help Ethereum scale! 🧑🏭 https://t.co/g3itFQbXqg
— Coinbase Wallet (@CoinbaseWallet) October 13, 2020
L2 scaling developers at the Plasma Group announced the launch of their Optimistic Ethereum testnet in late September. The team has developed a system called OVM, which is a fully-featured Ethereum Virtual Machine (EVM) compliant execution environment designed for Layer 2 systems.
The ultimate aim is the reduce congestion on the Ethereum network which is essential for the future growth of the ecosystem. Over the past few months, Ethereum users have become painfully aware of how demand can lead to congestion, which leads to skyrocketing transaction fees.
There were two instances in September when average gas prices surged into double digits as DeFi farmers flocked to the latest yield mining incentives. At the time of press, average transaction fees had dropped to around $2 but this is still way too high to be practical.
Coinbase is the second major centralized exchange after Bitfinex to announce plans to take some of their transactions off the Ethereum main chain, observed industry expert Camila Russo in her latest Defiant newsletter.
At the ETHGlobal Summit, Ethereum co-founder Vitalik Buterin highlighted the need to push wallets as a primary target for the migration to rollups.
“In the migration to rollups, the biggest challenge is user experience … The biggest part of the answer is a comprehensive ecosystem-level push and the first push is wallets.”
— Synthetix ⚔️ (@synthetix_io) October 14, 2020
Other L2 solutions are already in operation, such as the zkSync payments gateway from Matter Labs, the Ethereum zkRollup exchange and payment protocol Loopring, and the Plasma-enabled OMG Network.
You can see the Ethereum price here.
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