Ethereum’s Market Dynamics: Whales Holding Over Half of ETH
Date: 2023-11-26 Author: Dima Zakharov Categories: BLOCKCHAIN
Whales and Ethereum's Dominance
Reports from Santiment reveal that 200 major Ethereum wallets collectively hold a staggering 62.76 million ETH, which amounts to 52% of the cryptocurrency's overall supply. These entities, often referred to as whales, exert a substantial influence on the Ethereum market.
Market Resilience Amidst Fluctuations
Ethereum has managed to withstand recent pressures, experiencing intermittent downward spirals since early November. Instances of the token dropping below $2000 occurred as traders sought profit-taking opportunities, liquidating their crypto holdings on exchanges.
However, the altcoin swiftly regained ground and is currently trading above $2000, indicating a concerted effort by the majority of investors to prevent a significant cryptocurrency retracement.
Support from Diverse Investor Segments
Apart from major investors, smaller and mid-level investors have intermittently supported Ethereum. Last Tuesday, November 21st, Ethereum's blockchain witnessed the creation of an additional 94,700 new addresses, marking a surge in user activity not seen for the past four months.
Trends in Exchange Reserves and Whale Accumulation
Santiment also observes a consistent outflow of Ethereum from exchange wallets. Approximately 8.24% of the altcoin's market supply is held on trading platforms, reaching an all-time low in terms of volume available on exchanges.
Over the past year, these significant holders, the whales, have accumulated ETH worth over $124 billion. Analysts underscore a 30% increase in the reserves held by these major Ethereum holders since November 2022, further highlighting their substantial impact on Ethereum's market dynamics.
