Bitcoin Whales Accumulating, Ethereum Whales Selling
While Bitcoin holders continue to hold onto their coins, Bitcoin whales are actually increasing their holdings. On the other hand, Ethereum whales seem to be taking a different approach by selling their holdings in recent years.
Bitcoin Whales Buying More
Bitcoin whales, which are the largest holders with 1000 BTC or more, have been steadily accumulating more BTC since 2018. Although there have been sell-offs during extended bear markets or after strong bullish trends, overall they have been increasing their holdings.
Ethereum Whales Selling
In contrast to Bitcoin whales, Ethereum whales with more than 1,000 ETH have been selling their holdings since the same period. On-chain data shows that they have offloaded 20 million ETH since 2022, with 12 million ETH being sold this year alone.
Possible Explanation For the Contrasting Whale Activity
The difference in whale activity between Bitcoin and Ethereum may reflect the prevailing sentiment among large holders of these cryptocurrencies. While it may seem like Ethereum whales are selling or moving their funds to other cryptocurrencies, it is more likely that they are transferring their ETH into Ethereum smart contracts.
Ethereum version 2.0 has introduced staking, where validators need to stake 32 ETH in a deposit contract to validate transactions on the blockchain. This has led to a significant increase in the number of tokens locked in smart contracts. The percentage of supply tied in smart contracts surpassed the supply held by addresses with 1000+ ETH in late 2020.
Conclusion
The contrasting whale activity in Bitcoin and Ethereum suggests different strategies among large holders. While Bitcoin whales continue to accumulate, Ethereum whales are utilizing smart contracts to maximize their gains. The dominance of the Ethereum blockchain in the smart contract space further solidifies its position as the leader in this area. However, it’s important to note that a recently failed bullish pattern formation could potentially lead to a decrease in the price of ETH.
Source: Cryptoslate
Hot Take: Ethereum Whales Differing from Bitcoin Whales
Ethereum whales seem to be taking a different path compared to Bitcoin whales. While Bitcoin whales are accumulating more coins, Ethereum whales have been selling their holdings. This difference may be due to the utilization of smart contracts on the Ethereum blockchain, where large holders are staking their ETH instead of simply holding onto it. As Ethereum continues to dominate the smart contract space, these whales are employing strategies to maximize their crypto gains. However, with recent market patterns indicating a potential price decrease for ETH, it will be interesting to see how these contrasting whale activities impact the overall market dynamics.
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