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Bitcoin Gives Way To Ethereum As Investors Anticipate May Halving

Comparative analysis between Bitcoin and Ethereum reveals that the latter is fast gaining traction as investors hold bitcoin in preference to trading ahead of the block halving in May. Bitcoin has seen numerous ups and downs within the last quarter. From extreme price swings to unbelievable hash rates and exchange volumes, all of which point to the singular thought of the king crypto reacting to its upcoming block halving with every step it takes closer to the event.

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A recent report by Glassnode indicates that the total number of bitcoin held in crypto exchanges continues to decline over a 10-day period. The resulting inference is quite simple and straightforward- investors are accumulating bitcoins and withdrawing them from exchanges ahead of May 2020 halving which occurs in about 26 days from the time of writing this piece.

Data By Glassnode: Bitcoin Records Lowest Exchange Balances In 2020

The data by Glassnode indicates that a decline in exchange balances suggests a shift to longterm bitcoin holding strategies by investors. According to the report, the total number of bitcoin held in exchange addresses falls to 2,214,365 as of 14 May 2020. This represents an 8% loss from a January record which stands at 2,404,786 bitcoins.

The report from Glassnode correlates with a conventional belief that investors tend to withdraw their bitcoins from exchanges at times when prices are expected to go higher and do otherwise, sending bitcoins back to exchanges in order to sell, when the price falls. Bitcoin halving event evidently used to control inflation and which has a bullish record over time, this time again, instigates an expected investor behavior in terms of demands and supply.

Ethereum Takes Charge, Records 371% Improved Activities

However, as Bitcoin fights to maintain a balance at this point in time, its struggles make way for rival cryptocurrency, Ethereum, which according to comparative analysis, recently spots the limelight.

Ethereum’s blockchain activities and wallet interaction see a significant increase in Q1 of 2020 compared to recent years. The data by DAppRadar reveals that Ethereum blockchain records a 64% increase in active wallets and 80% in value of DApps smart contracts across all blockchains. This represents a significant 370% more value than Q4 of 2019, parrying competitions from rival blockchains like Tron and EOS.

According to DappRadar

“Across the quarter, the Ethereum dapp ecosystem experienced growth of 16% in terms of combined daily active unique wallets across all dapps during Q1 2020. Ending March with 17,489 active wallets. On a year-on-year basis, the growth was 64%…”

“Looking at token value. Ethereum accounted for 81% of the total value of $6.7 billion of value that interacted with all smart contracts across all blockchains during Q1 2020.”

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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