Ethereum whales are dominating the overall supply of digital currency, a trend that might tilt the price of the coin
The largest wallets holding Ethereum (ETH) now control 57% of the total supply. This is the highest level of control by these large holders, known as whales, in the Ethereum network.
Reports show that the top 104 whale wallets, each with over 100,000 ETH, own about $333 billion worth of Ether based on current market prices. This consolidation of ETH in a small number of wallets shows the increasing power of whales in the Ethereum ecosystem.
Whale Wallets on a Rise
Notably, the mid-sized holders (those between 100 and 100,000 ETH) have decreased their share.
Their total share has fallen to a record low of 33.5%. Likewise, smaller wallets holding less than 100 ETH have lost influence. They now represent only 9.19% of the total Ether supply, a low we haven’t seen in nearly four years.
🐳 There are currently 104 whale wallets holding at least 100K Ethereum. Their combined holdings currently sit at 57.35% of all existing ETH tokens, currently worth ~$333.1B.
Meanwhile, wallets with 100-100K hold their lowest ratio of supply in history, 33.46%. And sub-100 ETH… pic.twitter.com/9qDN3lotQy
— Santiment (@santimentfeed) December 17, 2024
This shows that retail investors and smaller players own a smaller share of Ethereum, while wealth is becoming more concentrated among the largest participants in the network.
Meanwhile, the rise of whale wallets raises concerns about how it could affect Ethereum’s decentralization and market behavior. One concern is that a few large holders might manipulate the market because they control a significant amount of ETH.
However, this concentration might also show strong confidence in Ethereum’s long-term value as these big holders continue to buy and keep their ETH.
Ethereum Whales Display the Diamond Hands Effect
Recall that a group of investors known as the 7 Siblings made a huge ETH purchase in October.
The whale investors acquired 28,120 ETH at an average price of $2,350 each, spending $66 million. This mysterious group has become known for swooping in when the market is down. In August, these investors made headlines by spending $129 million on 56,093 Ethereum at $2,305 per token.
Furthermore, an Ethereum ICO participant recently resurfaced after being dormant for nine years. Meanwhile, regular investors are cautiously watching from the sidelines, as they often lack the deep pockets to weather potential losses.
Despite the market decline, the seven Siblings are bullish on Ethereum because it is the backbone of many blockchain-based innovations. These include Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and smart contracts.
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