Ethereum has quietly built a massive user base that now eclipses that of Bitcoin, even as its price suffers. Data from non-empty wallets shows that Ethereum has around 189.49 million holders, more than three times Bitcoin’s 59.08 million. The figures were shared by Leon Waidmann, head of research at Lisk. Tether ranks third with 13.61 million holders, followed by $XRP with 7.8 million, while USDC has 6.76 million non-empty wallets.
Network growth versus market performance
Having a large user base has not protected the price of Ethereum in recent times. Over the past month, $ETH has fallen more than 30%, trading near $1,620 at the time of writing. This decline penalized companies that rely heavily on this asset. For example, Nasdaq-listed FG Nexus made Ethereum its primary treasury reserve asset in celebration of the blockchain’s 10th anniversary. The company reportedly lost more than $85 million on its Ethereum strategy after selling below its purchase price. The general market slowdown forced it to reduce its exposure.
Despite the low prices, some analysts see potential. Crypto analyst Michaël van de Poppe noted that $ETH’s daily relative strength index (RSI) fell to its lowest level ever. He believes this extremely oversold situation could mean the crypto bear market is coming to an end. A turnaround, he suggests, could come sooner than expected.
ETFs reverse their exit sequence
Spot Ethereum ETFs have also felt the pressure. After 17 consecutive trading days of outflows, these funds saw net inflows of $19.3 million on June 4. Inflows came entirely from ETHA, while the other nine ETFs saw no activity. Nonetheless, overall net outflows for the week came in at $168 million. SoSoValue said these latest numbers could mean ETF flows are stabilizing. But a significant recovery, he noted, will depend on continued inflows into Ethereum and other major crypto assets.
For the most part, Ethereum’s network is healthy and growing. Its price action, however, tells a different story, one that has been difficult for investors and businesses. The next few weeks could clarify whether the RSI signals a true bottom or just another pause before more pain.
