Crypto Whales Accumulate Over 35% of Ethereum Supply, Raising Centralization Concerns
New data reveals that the top 10 Ethereum addresses now control more than 35% of the total ETH supply, raising concerns about the decentralization of the network. While smaller traders have been selling off their supply during the recent price crash, large ETH holders are taking advantage of the opportunity to buy the dip.
- The 10 largest Ethereum addresses now hold over 35% of the available supply.
- Over the past 5 years, these addresses have seen their share of the total ETH supply grow substantially.
- Etherscan shows that the largest address alone controls over 24% of all supply.
- Cryptocurrency exchanges like Binance and Kraken hold significant amounts of ETH, with Binance being the largest single entity holder.
- In comparison, the top 10 addresses of Bitcoin only own 5.35% of the total supply.
Whales have considerable control over the price movement of cryptocurrencies, and large selloffs by these holders can lead to selling pressure from smaller investors, causing a dump in the price of ETH. However, the largest holder being the Beacon Deposit Contract used for staking ETH is positive news, as it indicates more investors are becoming validators in ETH 2.0.
Despite concerns over centralization, the number of wallets holding between 10 and 10,000 ETH has increased, and whale transactions have reached the highest levels since May. Currently, ETH is trading at around $1,600, down 11% in the past month.
Hot Take:
The concentration of ETH supply in the hands of a few large holders raises concerns about the decentralization of the Ethereum network. While the largest holder being the Beacon Deposit Contract is positive for ETH 2.0, the influence of whales on price movements remains a potential risk for smaller investors.
By
By
By
By