Connect with us
Active Currencies 14355
Market Cap $2,761,380,159,030.00
Bitcoin Share 50.78%
24h Market Cap Change $8.44

One ETH is worth more than one ounce of gold, here’s what this means?

2min Read

Share this article

The cost of 1-ounce of gold in USD is $1824, at the moment and the price of 1 ETH is $1871. This means that if you had bought one ounce of gold a year ago, you would have an unrealized profit of 15.84 percent on your investment currently. However, if you had bought ETH, a year ago when one ounce of gold was worth $1575.10, you would be in possession of 5.76 ETH and the same is the equivalent of $10776.96 – a 584 percent return on investment.

After discounting a few Ethereum in Network fees, considering the fact that most traders on Crypto Twitter including CZ of Binance have ranted about it, the return is still much higher than a Gold investment.

So what does this mean for Ethereum’s price rally and trend? To analyze the trend consider a curious metric, the number of addresses in profit at a 7-day moving average.

ETH number of addresses in profit || Source: Twitter

Earlier today, the number of Ethereum addresses in profit hit an ATH of 53.5 million based on the above chart from Glassnode. Despite a high number of addresses sitting on unrealized profits, Ethereum’s price has not given in to the selling pressure. The price is currently closer to the new ATH above $1800 and on-chain analysis suggests that the sentiment among traders is neutral, and for Ethereum that is a positive sign for the price since that leaves a place for vertical price growth.

Interestingly, Ethereum’s correlation with Bitcoin is at 0.85, and though there are talks of Bitcoin flipping Gold, Ethereum is emerging as a competitor having crossed the price of 1-ounce of gold, in less than a decade of its existence. This is a bullish sign in the long-term as more institutional investment is targeting Bitcoin, and Ethereum may benefit from the spillover.

Major altcoins, in the top-100 based on market capitalization, have broken out, and the alt season fractal ensured that traders were sitting on unrealized profits with double-digit growth. Ethereum stands out as an enabler of a majority of alts and the DeFi ecosystem and a price correction in the short-term is only indicative of upcoming growth.


Ekta is a full-time journalist at AMBCrypto and her specialization lies in spot markets. Currently pursuing her MBA, she is passionate about trading, fintech, and everything decentralized.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.