Unlike traditional assets, the transaction information of Ethereum and other cryptocurrencies is almost completely public opened and transparent. While the transactions of traditional assets are not recorded in a database shared with the whole world. Users may not know who made a transaction or who owns a specific wallet address, but all companies and individuals can access the metadata of every transaction that occurs on the blockchain network.

And just because of this feature, it is inevitable that many people use this feature of blockchain to analyze data to gain more advantages than other investors and users.

One of them is Adam Cochran, a venture capitalist in the cryptocurrency field, who realized the importance of data on the chain. In a blog post recently published by Adam, he mentioned that he analyzed the top 10,000 addresses of Ethereum, and he concluded that “everything is good for ETH.”

Ethereum whales are flashing a series of optimistic signals

In his analysis report on Ethereum Whales, Adam found 31 key factors, almost all of which can be interpreted as optimistic signals for Ethereum. Below are some of the key factors found by Adam Cochran:

• Whales are holding more and more ETH. Adam said: “In the past 6 months, the existing whale position has increased by more than 4%.” This is equivalent to the purchase of 550 million USD worth of new ETH. This amount is important because “this is comparable to the approximately 600 million USD in new funds that flowed into Bitcoin throughout the whole year of 2019.”
• Part of the world’s largest institutions, including Microsoft, are also holding ETH. The analysis report wrote: “Wallets related to major players such as JPMorgan, Reddit, Amazon, Microsoft, IBM and Wal-Mart are also accumulating ETH.
• The exchange’s ETH storage has exploded, but ETH’s “sell wall” is being gnawed by the whales. The analyst observed: “In the past 6 months, the exchange’s daily ETH deposits have increased by 5 times, from 11,000 ETH per day to more than 55,000 ETH per day.” Although the deposits increased by 5 times Is a sign of a bear market), but the price of ETH has risen instead. This means that big investors are full of confidence in ETH and are holding a lot of ETH.
• Miners are also holding more and more ETH. As Eth2.0 is approaching, miners have begun to hoard ETH – “In the past 6 months, miners have accumulated 1.15 million ETH, which worths about 230 million US dollars, and they have never sold them.” Adam believes this is an aspect that miners are optimistic about ETH and think it is a sign of future assets, especially with the upcoming of Eth2.0 Staking mechanism.
• ETH is being used as real currency (real money). There are currently 16.2 million ETH in “active” circulation, which means that ETH “is flowing through payment processors, payment gateways, or smart contracts (excluding exchanges or multi-signatures) in the past 90 days.” Adam believes that this indicates ETH is actually “used heavily as currency and gas expenses.”
• Participants of the Ethereum ICO are very focused: Among the genesis wallet addresses that have claimed ETH, “97.4% of people are still holding more than 75% of their original purchase of ETH.” And including Vitalik Buterin, the co-founder of Ethereum, has also been holding a lot of ETH firmly.

Based on these findings, Adam concluded that “everything is good for ETH.”

It is worth noting that this is Adam ’s third comprehensive analysis of the Ethereum ecosystem in the last two weeks. Previously, he had stated that the Staking upgrade introduced by Eth2.0 might be the biggest economic transformation in the field of encryption; while in another article, he said that MakerDAO’s stablecoin DAI may be the biggest risk in the field of DeFi (decentralized finance) .

More optimistic fundamentals

In addition to these optimistic on-chain trends, Ethereum has also recently received a major fundamental boost. Andreessen Horowitz (a16z), a venture capital firm that is known for its early investment in Twitter, Slack, and Instagram, recently announced that it has raised a second 515 million USD crypto fund named “Crypto Fund II [2]” that will be used to invest in crypto networks and enterprise (Note: In 2018, a16z launched its first cryptocurrency fund, which raised more than 300 million US dollars).

a16z said that the new fund that worths 515 million US dollars will be used to invest in five areas of cryptocurrency and blockchain:

• The Next generation of payment
• Modern value storage
• Decentralized Finance (DeFi)
• New way for founders to monetize through a token model
• Web 3.0

Venture capitalist Andrew Kang believes that Ethereum will probably be one of the biggest beneficiaries of this new fund. He interpreted “a16z’s plan to invest heavily in the next generation payment” project as “a16z would invest in ETH as the settlement layer of the stablecoin.”

I believe this assertion is likely correct: as a16z’s first fund “Crypto Fund I” also invested heavily in the Ethereum ecosystem, including some stablecoin projects, MKR, SNX and DeFi agreements such as Compound and dYdX, investing tens of millions of USD.

It is also optimistic that Eth2.0 has also made great progress recently. Ethereum developer Terrence Tsao recently stated that the first testnet with Eth2.0 stage 0 mainnet configuration has exceeded 100,000 slots (Note: slot is the length of a block generated in Eth2.0, each slot is 12 seconds), with more than 24,400 validators participating, etc. At the same time, recently, Eth2.0’s first multi-client test network Schlesi has been launched and is steadily running at present, the Schlesi testnet has supported the synchronization of three Eth2.0 clients, Lighthouse, Prysm and Teku!

This confirms that the Eth2.0 specification that the testnet is running is reliable, and as of now there are no obvious bugs, which indicates that the launch of Eth2.0 phase 0 (beacon chain) will be most likely arriving in this summer, just as Eth2. 0 Researcher Justin Drake had expected it.