Ethereum Whales Increase Their Holdings to New All-Time High
Data from on-chain analytics firm Santiment reveals that the top ten Ethereum whales have been steadily increasing their holdings, now totaling 41 million ETH. There are two categories of interest: the supply held by top exchange wallets and the supply held by top non-exchange wallets.
The former represents the total amount of Ethereum held by the largest wallets associated with centralized exchanges, while the latter measures the amount held in the ten largest self-custodial wallets on the blockchain.
Over the past year, the supply held by non-exchange whales has consistently risen, while exchange wallets have experienced more fluctuations. This trend indicates that investors prefer holding their coins in self-custodial wallets for extended periods, which is positive for the cryptocurrency.
The recent increase in supply has pushed these whales’ holdings to a new all-time high of 41 million ETH. In contrast, exchange wallets now hold just 8 million ETH, the lowest amount in 24 weeks.
Shift Towards Self-Custody Signals Market Health
A shift of supply from exchanges to self-custodial wallets is beneficial for market stability. It reduces the impact on price if exchanges face financial difficulties or go bankrupt. Additionally, a decrease in available selling supply on exchanges contributes to a healthier market environment.
However, it’s worth noting that concentration of supply in just ten wallets is still a concern. These entities now control one-third of the total ETH supply.
Ethereum Price Update
Currently, Ethereum is trading slightly below $2,100, experiencing a 1% decrease over the past week.
Hot Take: Ethereum Whales Accumulate, Exchanges Struggle
The increasing holdings of the top ten Ethereum whales reflect their confidence in the cryptocurrency’s future. The shift towards self-custodial wallets indicates a preference for long-term investment strategies. This trend benefits the market’s stability by reducing reliance on exchanges and decreasing available selling supply.
However, the concentration of supply in a small number of wallets raises concerns about centralization. As Ethereum continues to evolve, it will be essential to address this issue and promote a more decentralized distribution of wealth within the network.
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