As a seasoned researcher with years of experience observing and analyzing blockchain data, I find myself constantly amazed by the dynamics at play within the Ethereum ecosystem. The recent revelation that Ethereum Whales now hold around 43% of the entire supply is a stark reminder of the power these entities wield in shaping the market’s trajectory.
Recent on-chain analysis indicates that large Ethereum investors, known as whales, have been steadily increasing their crypto holdings. Consequently, their percentage of the total supply has grown.
Ethereum Whales Now Hold Around 43% Of The Entire Supply
On their latest publication at X, the data analysis tool IntoTheBlock provided insights into the distribution of Ethereum supply among significant network participants.
The groups under discussion are broken down according to the amount of assets each user holds. These groups, as defined by IntoTheBlock, include Retail Investors (those with smaller holdings), Regular Investors (with moderate holdings), and Whales (those with large or substantial holdings).
In this group, known as Retail, we find the smallest players in the Ethereum market. They collectively own less than 0.1% of the circulating Ethereum supply. This group primarily consists of individual investors with limited market sway.
As soon as holders cross the 0.1% threshold, they gain a more significant status within the network, but their control remains relatively restricted until they reach the 1% milestone. Individuals in this bracket are typically referred to as Investors.
Outside this scope reside the network’s most influential figures, often referred to as “Whales.” These entities possess over 1% of the total Ethereum supply in their holdings, equating to approximately $2.83 billion according to the current exchange rate.
Below is the chart shared by the analytics firm, which shows how the distribution of the Ethereum supply has changed between these three groups over the history of the blockchain.
The graph indicates that about half of the current Ethereum supply is owned by the Retail cohort, specifically amounting to approximately 48%. Interestingly, the Whales aren’t far behind, holding around 43% of the ETH supply as well.
In my analysis, I’ve noticed that whales currently occupy a substantial portion of the supply, but that wasn’t consistently true in the past. As the graph clearly demonstrates, these colossal players were controlling just a modest market share barely a few years ago.
Ever since then, a significant amount of capital appears to have taken a keen interest in the coin, with a consistent buildup over time. It’s worth noting that the pace of purchases by this group has noticeably increased since 2023, coinciding with the implementation of the Shanghai Upgrade.
The Shanghai Upgrade was a hard fork of the Ethereum network that enabled investors to unstake their holdings sitting locked in the Proof-of-Stake (PoS) contract.
The increase in accumulation by the Whales lining up with this fork could be attributed to a surge in investor interest towards staking, enabling withdrawals to occur.
In simpler terms, as more individuals put their coins into joint investment pools (staking pools), these groups amass a significant amount of assets. Consequently, when the demand or interest increases, it leads to an increase in the proportion of coins owned by these large-scale holders (whales).
Although whale investments could potentially boost the future increase in the cryptocurrency’s value, overconcentration of the supply among a limited number of platforms or investors might not be entirely favorable.
ETH Price
At the time of writing, Ethereum is floating around $2,350, down over 4% in the last seven days.
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2024-09-11 11:12