While Bitcoin is waiting for its halving, an event that halves the number of newly generated bitcoins, the whales of the cryptocurrency universe aren’t just accumulating BTC and waiting for the halving to bring a new price hike. The newly published data indicate that large investors are also accumulating ether.
Adam Cochran, executive of the data protection-oriented search engine DuckDuckGo, said that he manually checked around 10,000 Ethereum addresses to investigate the activity, profitability, liquidity and market manipulation of the ETH whales.
Second, according to Cochran, current ETH whales have increased their positions by more than $ 550 million, or 4%, in the past six months, compared to the estimated $ 600 million for the new capital inflow. Bitcoin had last year.
According to DuckDuckGo manager, not only the existing whales are piling up.
“There is a significant number of new portfolios in the top ten that have had their first transaction related to fiat wallet exchanges for major customers (mainly Gemini, Kraken and Coinbase). These new addresses typically buy $ 100,000-250,000 on Ethereum and represent about 6 % of the richest 10,000 addresses (or ~ $ 100 million for new ETH purchases in the past 6 months), “he said.
The new and existing combined whales bought more than $ 650 million in ether in the last semester, more than the total flow of bitcoin in 2019.
And the data show that large investors also seem to have no interest in selling their ETH holdings.
“Currently, only 19.5 million ETH are offered for sale on stock exchanges. Even if 33.6 million ETH are on stock exchanges. This corresponds to only 58% of deposits, as whales do. For comparison: This number was historically higher than 75% as long as the price of ETH rose> 25%. It is the first time in history that ETH has increased> 50% and the number has dropped below 80%, “he said.
Data from the cryptocurrency analysis company Glassnode confirm the Cochran survey and show that ETH investors show strong “HODLING” behavior. For ETH, the data show that 77.7% of the tokens in circulation did not move within six months. Within a year, 57.6% of the ETH did not change hands and 31.6% remained immobile for two full years.
Another survey, conducted by a Reddit user, found that Grayscale, one of the best-known cryptocurrency companies, had bought around 50% of all ether mined in 2020. According to the post, Grayscale has since bought 756,539 ETH earlier this year. This corresponds to 48.4% of all cryptocurrencies mined since the beginning of 2020. A total of 1,563,245 ETH were mined during this period.