Ethereum Whales Now Hold 43% of Total Supply: What It Means for Investors

Ethereum has experienced a significant shift in ownership dynamics, with large holders, known as 'whales,' now controlling 43% of the total Ether (ETH) supply. This development comes at a challenging time for the cryptocurrency, which has seen its price drop by more than 15% in the last month.

Key Takeaways

• Whales now control 43% of Ethereum's circulating supply.

• Retail investors hold about 48% of the supply.

• Ethereum's price has dropped by over 15% in the last month.

• The Shanghai upgrade has accelerated whale accumulation since 2019.

Whale Dominance in Ethereum

The increasing dominance of whales in Ethereum's ecosystem is largely attributed to the Shanghai upgrade. Since 2019, large holders have been accelerating their accumulation of ETH. According to data from IntoTheBlock, whales now hold nearly 45% of the circulating Ether supply, while retail investors—those holding less than 0.1%—control around 48%. This creates a clear divide between everyday investors and large holders.

Market Implications

The implications for Ethereum's price remain uncertain. On one hand, some investors hope that the increased interest from whales could drive the value of ETH upwards. On the other hand, there are concerns that having two dominant extremes—whales and retail investors—could limit market flexibility, making Ethereum more vulnerable to price swings.

Recent Price Trends

Despite becoming the second crypto-based ETF to be approved in the United States earlier this year, Ethereum has struggled to gain momentum. Its price has dropped by more than 15% in the last month, currently standing at $2,288. This decline has occurred even as whale accumulation has increased, raising questions about the future direction of Ethereum's price.

Conclusion

The growing influence of whales in Ethereum's ecosystem presents both opportunities and challenges. While their interest could potentially drive up the value of ETH, the divide between large holders and retail investors may also introduce new risks. As the market continues to evolve, investors will need to stay informed and adapt to these changing dynamics.

Sources

• Ethereum whales now hold 43% of total supply | Digital Watch Observatory, Digital Watch Observatory.