Ethereum Whales Increasing Their Holdings
New data from Santiment reveals that Ethereum is becoming more concentrated in the hands of whales. Billionaire investors with over 1 million ETH now hold 32.2% of the available supply, reaching a level not seen since 2016.
High-Value Transactions on Ethereum
In addition, Ethereum has experienced a surge in transactions exceeding $1 million, marking the second-highest day in a month for such high-value transfers. This indicates increased activity among large-scale investors.
Divergent Views Among Crypto Whales
Interestingly, there is a clear divergence in the behavior of major Bitcoin and Ethereum holders. Glassnode data suggests that Bitcoin whales have largely maintained their holdings, while Ethereum whales are exhibiting different views.
Ethereum’s price has declined by 1.3% and is currently trading at $1,568. Over the past two weeks, it has lost 4.5% along with other altcoins. Ethereum is now down 68% from its all-time high, while Bitcoin is down 59%.
Hot Take: Concentration of Wealth Raises Concerns
The growing concentration of Ethereum in the hands of whales raises concerns about centralization and potential market manipulation. As these large investors continue to accumulate more ETH, it could impact price volatility and hinder decentralization efforts within the network. This trend highlights the need for increased distribution and participation among smaller holders to ensure a healthier and more balanced ecosystem for Ethereum.
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