There has been a significant shift in Ethereum’s ownership landscape, with whale addresses now controlling around 43% of the total ETH supply, a substantial increase from the 22% share reported in early 2023, according to data from IntoTheBlock.
Over the past week, large holders have accumulated over 330,000 ETH, valued at more than $1 billion, indicating a growing interest in staking opportunities to solidify their positions.
Exploring Ethereum Whale Behavior
An examination of the Santiment index focusing on addresses holding between 1,000-10,000 ETH reveals a more concentrated pattern of ownership. The analysis indicates that this concentration has reached its peak levels since August 2024. Despite market volatility, these addresses have maintained a consistently high sentiment, showing strong conviction in their accumulation strategy.
The recent increase in whale addresses aligns with Ethereum’s price stability above $3,000, suggesting a deliberate positioning strategy ahead of potential market shifts. This surge in confidence also coincides with institutional participation in staking, underscoring a strategic approach to accumulation.
Staking Landscape in Ethereum Reinforces Concentration
Despite price fluctuations between $2,200 and $3,800, Ethereum’s staking rate has displayed resilience, rising from 26.25% in early 2024 to a steady 28.4% currently. This enduring upward trend reflects a strong belief among long-term holders. The total ETH staked has crossed 34 million.
Further reinforcing the trend of whale accumulation, data from Dune Analytics highlights a highly centralized staking ecosystem. Coinbase leads the centralized exchange staking with 3.27 million ETH (39.24% market share), followed by Binance with 2.14 million ETH (25.73%) and Kraken with 886,625 ETH (10.61%). These figures indicate that a few exchanges control a substantial portion of all exchange-staked ETH.
In the liquid staking sector, Lido dominates with 9.59 million ETH staked, holding a commanding 89.49% market share.
Implications for the Market
The confluence of whale accumulation and staking concentration raises important considerations regarding market dynamics. With whales accumulating over $1 billion worth of ETH in a week and major institutions holding significant staked positions, the market exhibits signs of increasing institutional influence.
While institutional involvement can bring stability and credibility, the growing concentration of power raises concerns about potential market manipulation risks and the decentralization of the network. The recent surge in whale accumulation and substantial staking presence could impact market liquidity and price discovery mechanisms.
Overall, the aggressive accumulation by whales and the concentrated staking positions reflect a maturing market structure, indicating that institutional players are establishing strategic, long-term positions.