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Large holders of Ethereum, also known as Ethereum whales, accumulation tendency On-chain data reveals an astonishing increase in their collective holdings. especially, Data from blockchain analysis companies IntoTheBlock shows that Ethereum whales currently hold approximately 43% of the total circulating supply of ETH.
The imbalance in ETH holdings raises important questions about ETH holdings. Impact on Ethereum price and future market dynamics.
Whale accumulation surges by more than 90% since early 2023
According to IntoTheBlock, the total concentration of ETH in whale addresses is Currently 61.09ETHwhich accounts for about 43% of the total supply. This marks a significant change from early 2023, when whales accounted for just 22% of Ethereum's circulating supply. IntoTheBlock classifies whale addresses as addresses that hold more than 1% of the total circulating supply of ETH.
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It is noteworthy that whale holdings of Ethereum have almost doubled in just one year. Naturally, having such a large amount of cryptocurrencies concentrated in a few wallets can spell disaster for the asset, as it means a small number of players can manipulate price trends to their will. However, the case of Ethereum deviates from this narrative due to the unique nature of its ecosystem and recent structural changes within the network since 2022.
The sharp increase in whale concentration can be attributed to two main factors: the Ethereum merger and Ethereum's increasing attractiveness. ETH staking to earn rewards. With the Ethereum merger that took place in 2022, blockchain moved from a proof-of-work (PoW) system to a proof-of-stake (PoS) mechanism.
Therefore, IntoTheBlock’s detailed data showing that 61.09 million ETH is concentrated in just three whale addresses makes a lot of sense.
What this means is that most of these ETH are locked into the proof-of-stake staking algorithms used by block validators on the Ethereum network. By locking up Ethereum, ETH miners and large holders not only reduce the circulating supply, but also contribute to the price increase by reducing the amount of Ethereum. Ethereum can be traded.
Ethereum Holder Trends – Investors and Retailers
An increase in ETH in whale addresses means less ETH available to investors and retail owners. IntoTheBlock classifies investors as domiciles holding between 0.1% and 1% of total circulating supply and retailers as investors holding less than 0.1% of total circulating supply.
As of this writing, there are 42 investor addresses holding a total of 15.2 million ETH. This is equivalent to 10.77% of the total circulating supply. The investor address is important, keeping in mind that the three whale addresses do not have much influence on the price movement. However, there is a lot of liquid ETH has a greater ability to influence market movements. Any significant decline from these investor addresses could cause a sharp decline in Ethereum price.
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Meanwhile, retailers, which make up over 99% of ETH addresses, are left with 46% of the total circulating supply. At the time of writing, Ethereum is trading at $3,225, down 2% in the past 24 hours.
Featured images from Pexels, charts from TradingView
