Ethereum Whales Control 43% of Supply
Large holders of Ethereum, also known as Ethereum whales, have been accumulation trend For some time now, on-chain data has shown alarming growth in their collective holdings. special, Data from blockchain analytics firm IntoTheBlock shows that Ethereum whales currently hold about 43% of the total circulating supply of ETH.
Imbalance in ETH holdings raises important questions about its holdings Impact on Ethereum Price and future market dynamics.
Whale aggregations surge by more than 90% since early 2023
According to data from IntoTheBlock, the total concentration of ETH in whale addresses is Currently 61.09 ETHaccounting for approximately 43% of the total supply. This marks a significant shift from early 2023, when whales held only 22% of Ethereum’s circulating supply. IntoTheBlock classifies whale addresses as those holding more than 1% of the total circulating supply of ETH.
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Ethereum whale holdings have nearly tripled in just one year, which is a noteworthy development. Of course, the concentration of such a large amount of cryptocurrency supply into a handful of wallets would spell doom for the asset, as it would mean that a handful of participants would be able to manipulate price dynamics to their own will. However, the situation with Ethereum diverges from this narrative due to the unique nature of its ecosystem and recent structural changes within the network since 2022.
The sharp rise in whale concentration can be attributed to two main factors: Ethereum consolidation and the growing appeal of whales Stake ETH to get rewards. The Ethereum merger taking place in 2022 will transform the blockchain from a proof-of-work (PoW) system to a proof-of-stake (PoS) mechanism.
So it makes sense that in-depth data from IntoTheBlock shows that 61.09 million ETH is concentrated in three whale addresses.
This means that most of this ETH is ETH locked in the proof-of-stake algorithm used by block validators on the Ethereum network. By locking up Ethereum, Ethereum miners and large holders not only reduce the circulating supply, they also contribute to price appreciation by reducing the number of Ethereum coins. Ethereum is available for trading.
Ethereum holder dynamics – investors and retailers
An increase in ETH in whale addresses means less ETH available to investors and retail investors. IntoTheBlock classifies investors as addresses holding between 0.1% and 1% of the total circulating supply, while retail investors are addresses holding less than 0.1% of the total circulating supply.
As of the time of writing this article, there are 42 investor addresses with a total of 15.2 million ETH, equivalent to 10.77% of the total circulating supply. Keep in mind that these three whale addresses have little impact on price dynamics and investor addresses hold large amounts of funds But there is more liquid part ETH has a greater ability to influence market movements. Any significant sell-off by these investor addresses could trigger a significant drop in the price of Ethereum.
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On the other hand, retailers who account for more than 99% of ETH addresses control 46% of the total circulating supply. As of this writing, Ethereum is trading at $3,225, down 2% in the past 24 hours.
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