Ethereum [ETH] has witnessed a significant increase in the number of its major holders, commonly known as whales. Fresh data reveals that the proportion of ETH supply controlled by these whales has been steadily rising, approaching the amount held by individual investors.
Major holders, encompassing whales, oversee more than half of the total ETH supply.
Expansion of Holdings Among Major Investors
Recent statistics from IntoTheBlock show that Ethereum whales currently possess about 58.37 million ETH, which accounts for over 43% of the overall Ethereum supply.
This signifies a substantial surge from the 30% they held in the previous year, indicating that major holders have augmented their holdings by over 10% in the past year.
The data also reveals that this accumulation notably accelerated post the Shanghai upgrade, which permitted Ethereum withdrawals for stakers.
The cumulative supply held by whales is now nearing the 48% held by individual investors, illustrating the rapid catch-up by whales.
Moreover, more than 52% of Ethereum’s total supply is presently concentrated among major holders, comprising whales and institutional addresses.
Surge in Ethereum Stakes Amid Extensive Accumulation
In early 2023, the accumulation by major Ethereum holders surged significantly, coinciding with the Shanghai upgrade. Individual investors held approximately 56% of the total ETH supply during that period.
Despite that, as the holdings of major addresses expanded, the supply held by individual investors gradually dwindled.
An intriguing analysis of exchange reserves indicated a continued decline during this timeframe. This suggests that the ETH offloaded by individual investors and other groups was soaked up by major holders instead of landing on exchanges.
This implies that whales actively acquired the ETH divested by smaller holders, reducing the available supply on exchanges and tightening liquidity.
Furthermore, the percentage of staked ETH has shown a consistent increase. Currently, over 28% of the total Ethereum supply is staked. This suggests that a significant portion of ETH offloaded by individual and other holders has likely been staked rather than traded on exchanges.
The combination of staked ETH and whale accumulation bolsters a positive outlook for Ethereum. A dwindling exchange supply and rising staked supply often result in supply constraints, potentially propelling prices upwards over the long haul.
Ethereum’s Bearish Trajectory Persists
At present, Ethereum (ETH) is exchanging at roughly $2,340, following a 2.7% uptick in the latest trading session. This marks the third consecutive day of price upswings for ETH.
Nevertheless, despite this recent upward surge, more action is required to alter Ethereum’s overarching trend, which continues to lean towards bearish territory.
The prevailing bearish trend indicates that although there is short-term positive momentum, the broader market sentiment still veers towards caution.
Ethereum would need to breach key resistance levels and sustain a more robust uptrend for a substantial shift to materialize.