Fun

Ethereum Whales Control 43% Of Supply – What This Means For Retail Traders

News Feed - 2025-01-20 09:01:32

Este artículo también está disponible en español.


Large holders of Ethereum, also called Ethereum whales, have been on an accumulation trendfor a while now, with on-chain data revealing a fascinating increase in their collective holdings. Particularly, data from blockchain analytics firmIntoTheBlock shows that Ethereum whales now hold about 43% of the total circulating supply of ETH.


The imbalance in ETH holdings raises important questions about its implications for Ethereum’s priceand market dynamics moving forward. Whale Accumulation Surges By Over 90% Since Early 2023


According to IntoTheBlock, the total concentration of ETH in whale addresses is currently at 61.09 ETH, which represents about 43% of the total supply. This marks a significant shift from early 2023, when whales held just 22% of Ethereum’s circulating supply. IntoTheBlock classifies whale addresses as those holding more than 1% of the total circulating supply of ETH. Related Reading Dogecoin Bulls Eye $3 As Whales Scoop 200 Million DOGE In The Last 2 Days 2 days ago


The nearly twofold increase in Ethereum whale holdings within just a year is a noteworthy development. Naturally, such a concentration of a large supply of cryptocurrency into a few wallets would spell doom for the asset, as it would mean a few players would be able to manipulate price dynamics as they wish. However, Ethereum’s case deviates from this narrative due to the unique nature of its ecosystem and recent structural shifts within the network since 2022.


The sharp rise in whale concentration can be attributed to two major factors: the Ethereum merge and the growing appeal of ETH staking to earn rewards. The Ethereum merge, which took place in 2022, transitioned the blockchain from a proof-of-work (PoW) system to a proof-of-stake (PoS) mechanism.


As such, in-depth data from IntoTheBlock, which shows the 61.09 million ETH concentrated in only three whale addresses, makes much sense. 


What this means is that these ETH are mostly those locked in the proof-of-stake staking algorithm used by block validators on the Ethereum network. By locking up their Ethereum, ETH miners and large holders have not only reduced the circulating supply but also contribute to price appreciation by reducing the amount of Ethereum available for trading.


 



  Ethereum Holder Dynamics – Investors And Retailers


The increase in ETH among whale addresses has meant less ETH is available for investors and retail owners. IntoTheBlock classifies investors as addresses holding between 0.1% and 1% of the total circulating supply, while retail are those with less than 0.1% of the total circulating supply.  ETH is now trading at $3,163. Chart: TradingView


At the time of writing, there are 42 investor addresses and they collectively own 15.2 million ETH, which translates to 10.77% of the total circulating supply. Keeping in mind that the three whale addresses do not do much with price dynamics, investor addresses holding significant but more liquid portionsof ETH have a greater capacity to affect market movements. Any substantial selloff from these investor addresses could trigger a sharp decline in Ethereum’s price.


Related Reading Bitcoin Reserve In The US: 65% Chance It Happens In 2025 1 day ago


On the other hand, retailers, which constitute 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 and is down by 2% in the past 24 hours.


Featured image from Pexels, chart from TradingView

News Feed

Solana Price On The Verge Of A ‘Big Breakout’ — Here’s The Target
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
The 4 Best Presales to Buy as Morgan Stanley Sets to Expand its Crypto Market Presence
Este artículo también está disponible en español. Donald Trump winning the elections has ushered in an unprecedented amount of bullish sentiment in the crypto market. Wit
Jesse Coghlan5 hours agoRonaldinho denies part in alleged $61M crypto scam at congressional hearingThe former pro soccer player said in a congressional hearing that his likeness was improperly used to market an allegedly
Ethereum Analyst Sets $3,000 Target As Price Action Signals Momentum – Details
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Savannah Fortis10 hours agoFTX, BlockFi claims settlement allowed to proceed, judge declaresA U.S. bankruptcy court judge has ordered the end of an automatic holding placed on claims settlement proceedings between the tw
Yellow Card Announces It’s Resuming Deposits and Withdrawals via the Naira
Yellow Card Announces It"s Resuming Deposits and Withdrawals via the Naira Yellow Card has announced the resumption of naira deposits and withdrawals in Nigeria via a statement fro
Chinese State-Run Media Warns About Bitcoin’s Price Falling to Zero as Regulators Issue Fresh Crypto Warning
Chinese State-Run Media Warns About Bitcoin"s Price Falling to Zero as Regulators Issue Fresh Crypto Warning A Chinese state-run newspaper has published an article warning about bi
How to transfer NFTs from OpenSea to MetaMask
Sasha Shilina51 minutes agoHow to transfer NFTs from OpenSea to MetaMaskConnect MetaMask to OpenSea, select your NFT, hit “Transfer” to your MetaMask address, and confirm the fee to move your NFT.67 Total viewsListen
Ten Years Ago Satoshi Nakamoto Logged Off – The Final Message from Bitcoin’s Inventor
Ten Years Ago Satoshi Nakamoto Logged Off - The Final Message from Bitcoin"s Inventor Ten years ago today, the pseudonymous programmer (or programmers) Satoshi N
William Suberg7 hours agoBitcoin due new local low? Watch these BTC price levels as $28K rejectsBitcoin bulls struggle to top their highs from the start of the week, while BTC price forecasts diverge over what could be n
$30M Bitcoin Cash ‘SIM Hack’ Sparks Wild Crypto Tales With Vague Sources
$30M Bitcoin Cash "SIM Hack" Sparks Wild Crypto Tales With Vague Sources On February 21, the crypto Twitter commentator Dovey Wan published a series of tweets about an alleged SI
Amaka Nwaokocha13 hours agoSEC vs. Ripple: Pro-XRP lawyer urges Clayton, Hinman testimonyJohn Deaton points out that testimony from former SEC officials Bill Hinman and Jay Clayton during the SEC vs. Ripple Labs case wou