Recent on-chain data indicates that Ethereum Whales have been actively increasing their cryptocurrency holdings, resulting in a larger share of the overall supply.
Ethereum Whales Currently Control Approximately 43% Of The Total Supply
In a recent post on X, the analytics platform IntoTheBlock provided insights into the current concentration of Ethereum supply among major groups of holders on the network.
The identified groups represent divisions of the asset’s userbase classified by their holding sizes. IntoTheBlock categorizes them into three primary cohorts: Retail, Investors, and Whales.
The Retail group encompasses the smallest participants in the market: those who hold less than 0.1% of the circulating ETH supply. This group represents the average investor, who generally holds limited market influence.
As holders surpass the 0.1% threshold, their standing within the network increases, although their influence remains marginal until they reach the 1% level. Individuals in this category are referred to as Investors.
Beyond this point lie the most influential players on the platform: the Whales. This category consists of holders who possess more than 1% of the ETH supply, equating to over $2.83 billion at the current market rate.
Below is the chart shared by the analytics firm, illustrating the evolution of Ethereum supply distribution among these three groups throughout the history of the blockchain.
It seems the Whales have been boosting their supply share recently | Source: IntoTheBlock on X
The graph indicates that the Retail group currently constitutes nearly half of the Ethereum circulating supply, with these smaller holders collectively accounting for 48% of the ETH supply, while the Whales account for a close 43%.
Despite the Whales currently holding a substantial portion of the supply, this was not always the case. As the graph illustrates, several years ago, these large entities maintained only a minimal market share.
However, it appears that institutional interest in the coin has grown significantly over time, evidenced by continuous accumulation. Notably, the buying activity within this cohort has ramped up since 2023, coinciding with the implementation of the Shanghai Upgrade.
The Shanghai Upgrade represented a hard fork of the Ethereum network, allowing investors to unstake their holdings that had been locked in the Proof-of-Stake (PoS) contract.
The surge in accumulation by the Whales following this fork may stem from a renewed interest in staking, especially now that withdrawals are permitted.
Many of these investors likely deposited their assets through staking pools, which collectively manage substantial amounts, so the increased interest would have concurrently raised the share of these whale entities.
While the enthusiasm from the Whales could be indicative of positive future growth for the cryptocurrency’s price, the concentration of supply in the hands of a few platforms or investors raises concerns.
ETH Price
As of the current moment, Ethereum is trading around $2,350, down over 4% in the past week.
The price of the coin has shown signs of recovery in recent days | Source: ETHUSD on TradingView
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com
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