This signals a surge in coin accumulation by market participants over the 90-day period, despite the 10% decline in ETH’s value after it peaked at $4065 on 11 March.
The altcoin’s rally above $3500 towards $4000 between 4 and 19 March triggered a wave of sell-offs. This contributed to a hike in its exchange reserves, with a year-to-date assessment of the coin’s reserves revealing a 5% decline.Between January and March, the number of ETH wallet addresses holding between 100 and 100,000 coins fell by 2%, according toAt press time, 45,623 wallet addresses held between 100 and 100,000 ETH. These addresses currently hold 36% of ETH’s circulating supply.
Conversely, during the period under review, the number of shrimp addresses holding between zero and 100 ETH coins climbed. As of 31 March, their number was 118.25 million, up 6% during the year’s first quarter.Also, the surge in ETH’s price above $3500 in Q1 led to a spike in its Market Value to Realised Value ratio.
This metric measures when an asset is overvalued or undervalued. When its ratio is high and on an uptrend, it suggests that an asset’s market value has exceeded its realized value. When this happens, most asset holders will be in profit. Conversely, when an asset’s MVRV ratio declines, it is deemed to be undervalued relative to its realized value. Investors who choose to sell their holdings at this point during the market cycle often do so at a loss.Although ETH’s MVRV ratio also declined after its price fell from its peak, it closed the quarter with a value of 107%.