The Evolution of Ethereum Ownership: Whales Hold Majority of ETH Supply
Recent data reveals a notable shift in Ethereum’s ownership landscape, with a growing number of large investors, commonly known as whales, now dominating the ETH market. The proportion of ETH controlled by these influential holders has been steadily climbing, closing in on retail investors’ share.
Rise of Large Holders in Ethereum
Latest figures from IntoTheBlock indicate that Ethereum whales currently possess around 58.37 million ETH, constituting more than 43% of the total Ethereum supply. This represents a substantial uptick from their 30% stake a year ago, signaling a rise of over 10% in their holdings over the past year.
The surge in whale accumulation notably accelerated post the Shanghai upgrade, which facilitated Ethereum withdrawals for stakers. The data now indicates that large holders are swiftly nearing the 48% share held by retail investors.
Moreover, over 52% of the entire Ethereum supply is now concentrated in the hands of these large holders, encompassing both whales and institutional addresses.
Growth in Ethereum Stakes Amidst Accumulation
Early 2023 witnessed a significant uptick in accumulation by large Ethereum holders, coinciding with the Shanghai upgrade, during which retail investors held approximately 56% of the total ETH supply. As the holdings of prominent addresses expanded, the portion held by retail investors gradually dwindled.
An examination of exchange reserves during this period reveals a continued decrease, indicating that ETH previously sold by retailers and other groups was absorbed by large holders instead of flowing back into exchanges.
This points towards an active acquisition of ETH sold by smaller holders by whales, leading to reduced supply on exchanges and reinforcing liquidity constraints.
Furthermore, the percentage of staked ETH continues to rise, with over 28% of the total Ethereum supply presently staked. This suggests that a large portion of ETH offloaded by retail and other holders has likely been staked rather than traded on exchanges.
The amalgamation of staked ETH and whale accumulation sets a positive tone for Ethereum’s future trajectory. A declining exchange supply coupled with a rising staked supply often instigates supply limitations, potentially propelling prices upward over the long haul.
Challenges Ahead for Ethereum’s Price Momentum
Presently, Ethereum (ETH) is exchanging hands at around $2,340, witnessing a 2.7% uptick in the latest trading session. This marks the third consecutive day of price appreciation for ETH.
Nonetheless, despite this recent surge, a more substantial shift in Ethereum’s overall trend is requisite as the prevailing sentiment leans towards a bearish outlook.
To effect a more notable change, Ethereum would need to overcome crucial resistance levels and sustain a robust upward trend.