Ethereum's largest token holders have been steadily amassing control over the second-largest cryptocurrency by market cap, effectively increasing their dominance in the process.
According to data shared by on-chain analytics firm IntoTheBlock, Ethereum whale accumulation has been consistent since 2019, accelerating in early 2023 when the network's Shanghai upgrade allowed withdrawals of staked Ether.
According to data shared on popular microblogging platform X (formerly Twitter), these whale addresses currently control more than 43% of Ethereum's circulating supply, closing in on the 48% controlled by retail investors.
The second-largest cryptocurrency has underperformed Bitcoin, gaining just 1.4% so far this year, while Bitcoin is up 33.6% in the same period and Ethereum's market capitalization is now around $278 billion.
However, it is worth noting that well-known cryptocurrency analyst Benjamin Cohen revealed that Ethereum’s monthly candlestick is “perfectly” tracking its performance in 2016. This suggests that if the trend continues, Ethereum could end September in the positive, decline later in the year, and then surge in 2025.
Cowen's analysis, shared on microblogging platform X, hints at a potential surge for Ethereum, which traded just under $11 in August 2016 before surging to a high of $370 in 2017 and then to a high of over $1,360 in early 2018 before a subsequent bear market.
If Ethereum were to replicate the 12,200% surge seen in 2016, the cryptocurrency would likely surge above the $30,000 mark during a historic bull run and its market cap would explode.
It is important to remember that past performance is not necessarily indicative of future results. The cryptocurrency market remains volatile and unanticipated events may disrupt expected price movements.
Featured image from Unsplash.
