Why Is Ethereum Attracting Triple the Holders of Bitcoin Amid a Price Slump?

Wallet data shows Ethereum has over three times as many holders as Bitcoin.

Ethereum has emerged as the blockchain with the largest number of holders, far ahead of Bitcoin.

Data on non-empty wallets shows that Ethereum has around 189.49 million holders, which is more than three times Bitcoin’s 59.08 million.

Network Growth vs Market Performance

The figures, shared by the head of research at Lisk, analyst Leon Waidmann, indicate Ethereum’s significantly large user base even as the asset’s price remained in a bearish zone. After Ethereum and Bitcoin, Tether ranks third with 13.61 million holders, followed by XRP with 7.8 million and USDC with 6.76 million non-empty wallets.

Even with such strong network adoption, ETH has been on a steady decline over the past month, losing more than 30% during the period. The crypto asset was trading near $1,620 at the time of writing.

The weakness in its price has also affected companies that built large treasury positions in the asset. One example is Nasdaq-listed FG Nexus, which has reportedly accumulated losses of more than $85 million on its Ethereum strategy after selling a substantial portion of its holdings below its purchase price.

The company had made ETH its main treasury reserve asset and started building its position around Ethereum’s 10th anniversary, with plans to become a major holder. However, the broader market downturn forced it to reduce its exposure.

Meanwhile, crypto analyst Michaël van de Poppe noted that ETH’s daily Relative Strength Index (RSI) has dropped to the lowest level ever recorded. He believes this extremely oversold condition could mean the crypto market is getting close to the end of the current bear market and that a turnaround may not be far away.

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ETFs Reverse Outflow Streak

The market pressure has also been visible in spot Ethereum ETF activity. However, after 17 straight trading days of outflows, these funds recorded net inflows of $19.3 million on June 4. The inflows were driven entirely by ETHA, while the remaining nine ETFs saw no activity.

Overall, Ethereum ETFs still posted $168 million in net outflows for the week. SoSoValue said the latest figures could mean that ETF flows are starting to stabilize, although a meaningful recovery will depend on whether inflows continue across Ethereum and the other major crypto assets.