Key Points
- Large Ethereum holders have increased their holdings by over 10% in the last year.
- Over 52% of Ethereum is now held by these large holders.
Large Ethereum Holders Increase Their Stakes
Data shows a significant rise in the number of large Ethereum holders, often referred to as whales.
These whales now hold approximately 58.37 million Ethereum (ETH), which is over 43% of the total Ethereum supply.
This is a notable increase from the 30% they held last year, indicating that these large holders have increased their holdings by over 10% in the past year.
Whales Accumulate More Ethereum
The accumulation of Ethereum by these whales accelerated after the Shanghai upgrade, which allowed Ethereum withdrawals for stakers.
Whales now hold nearly 48% of the total Ethereum supply, approaching the amount held by retail investors.
In addition to whales, more than 52% of Ethereum’s total supply is held by other large holders, including institutional addresses.
Staking and Accumulation Drive Ethereum’s Bullish Outlook
In early 2023, the accumulation of Ethereum by large holders increased significantly.
This was in line with the Shanghai upgrade and as a result, the percentage of Ethereum held by retail investors declined.
Analysis of exchange reserves shows that these reserves continued to decline during this period, suggesting that Ethereum sold by retail investors was bought by large holders.
This activity has led to a decrease in the available supply on exchanges and tightened liquidity.
Furthermore, the percentage of staked Ethereum has continued to rise, with more than 28% of the total Ethereum supply currently staked.
This indicates that a significant portion of Ethereum sold by retail and other holders has been staked rather than traded on exchanges.
Ethereum’s Market Outlook
Despite the increased accumulation and staking, Ethereum’s market trend remains bearish.
At the time of writing, Ethereum is trading at around $2,340, following a 2.7% increase in the last trading session.
However, despite this recent upward movement, more is needed to alter Ethereum’s overall trend.
The ongoing bearish trend suggests that while there is short-term positive momentum, the broader market sentiment still leans toward caution.
For a significant shift to occur, Ethereum would need to break through key resistance levels and sustain a stronger uptrend.
