In a rather interesting development for the second largest crypto by market cap, the Ethereum whale supply has surged, with large holders acquiring a remarkable 43% of all ETH. The shift comes as the cryptocurrency has struggled to gather any significant moment for its price in the last month.
Things certainly looked bright early in 2024. The token became just the second crypto-based ETF to be approved in the United States. Yet, that didn’t reflect in its value, as the crypto has struggled alongside a languishing digital asset market. Yet, ETH whales have made a notable move that could have important impacts on the token.
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Ethereum Whales Shift Supply Concentration as ETH Eyes $2,300 Return
Few cryptocurrencies have struggled as much as Ethereum throughout August. In the last 30 days, ETH is down more than 15%, according to CoinMarketCap. Moreover, it has dropped more than 5% in the last seven days, currently trading at $2,288.
With many traders hoping for a move upward, an interesting development in its supply concentration has come to light. Indeed, Ethereum whales have surged, acquiring 43% of the entire ETH supply.
According to IntoTheBlock data, those large holders have been increasing their prominence since 2019. Yet, their ETH holdings accelerated last year. That surge was due in large part to the Shanghai upgrade. Ultimately, it has now neared the 45% mark as far as its dominance of the circulating Ether supply.
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The analysis firm recognizes retail, investors, and whales as the three primary user bases holding Ethereum. The retail demographic denotes those who hold less than 0.1% of Ethereum, and are the typical everyday investors. Once they exceed 0.1%, they are then perceived analytically as investors.
That distinction only lasts till the 1% mark. A holder who exceeds that percentage would be considered a whale. That means they hold a minimum of $2.83 billion ETH. The data shows that retail makes up nearly half of the ETH supply, at 48%. The other dominant holders are the aforementioned whales.
This clearly shows that Ethereum is split nearly down the middle between average investors and large holders. The question is, how does this impact the price? There is hope that whale interest could drive the value up. But the token could suffer from the two extremes dominating. Leaving little room for maneuverability.