Modern technology gives us many things.

ETH whales’ holdings approach $1 billion following accumulation spree

The new year has only just begun but we’ve already seen some pretty interesting developments in the crypto market. Both Bitcoin and Ethereum experienced an initial surge before suffering an immediate price correction, so the two main assets are going through a bit of a recovery at the moment. Binance data shows that Ethereum has been trading flat over the past few days, stabilizing around the $2,200 price point. At the time of writing, 1 ETH was valued at $2,221.

But what’s even more interesting is the activity of Ethereum whales who seem to have been quite busy lately supplementing their ETH holdings. The most recent shopping spree saw their holdings reach a new all-time high of nearly $1 billion. This can be interpreted as a positive signal, paving the way for a bull run, but can just as well serve as a warning, highlighting an increased risk of market manipulation.

Understanding crypto whales

First, we have to clarify what Ethereum whales are and why they matter. We should start by explaining that not all crypto holders are created equal. Some own bigger holdings than others, which has led to their classification based on the number of coins they have in their wallets. Those who stand at the top of the crypto hierarchy are known as whales, being followed in descending order by sharks, dolphins, fish, and other categories with marine-inspired designations.

Therefore, crypto whales are individuals or organizations that own a large percentage of a specific crypto’s supply, but also those who own a large amount of several types of crypto. In this particular case, we’ll be referring to entities that hold between 1000 to 10,000,000 ETH units.

When whales sell or buy a considerable number of coins, this can change market dynamics and influence price trends in the short term. A single large transaction from a crypto whale has the ability to drive prices up or down, causing notable fluctuations in the market.

Given their influence and power, their actions are closely monitored with the help of crypto whale trackers. This allows analysts and investors to observe the activity of major crypto wallets and see their on-chain portfolios and transactions – an act known as whale watching – so they can anticipate potential market swings and make informed trading decisions.

What have Ethereum whales been up to?

Recently, on-chain analysts noticed that Ethereum whales have been ramping up accumulation. Spot On Chain pointed to one whale in particular, with the wallet address beginning with 0x9314, who has been working on boosting its holdings ever since January 2023 and has come to acquire a total of 79,500 ETH from both decentralized exchanges and Binance. In its most recent move, the whale invested a staggering $48 million in purchasing 21,192 ETH, when the coin was trading at $2,265. The coins it has bought so far have brought the whale a 26% profit which translates into approximately $36 million.

This is not the only whale causing waves in the crypto market as of late. Two other large wallets identified by LookOnChain have also increased their ETH and BTC holdings after the flash downswing experienced at the beginning of January. These whales purchased a combined total of 1,300 ETH, at a price of $2,225 per coin.

Data from crypto and blockchain-focused market intelligence platform Santiment supports the accumulation narrative, revealing that almost 54% of Ethereum’s total circulating supply, amounting to 65.71 million ETH, is now held by leading Ethereum investors. The amount is spread between the top 150 private wallets holding 56.25 million ETH, and exchange-linked wallets which own the rest 9.46 million ETH.

If these figures aren’t impressive enough, we should also note that the total accumulation by whales is getting close to hitting the $1 billion mark. With more than 410,000 ETH residing in whales’ accounts, the sum amounts to a whopping $920,745,200. This accumulation spree has led to a new record high in terms of whale holdings.

What does this mean for Ethereum and the crypto market?

Since crypto whales hold a lot of sway on the market, many are now wondering how this recent spike in whale activity is going to impact Ethereum’s trajectory and the market as a whole. Ethereum is already an extremely influential coin in the crypto space, being the second-largest crypto after the undefeated front-runner Bitcoin. Any move from the altcoin leader is bound to have a powerful effect on the entire industry.

Despite the recent price swings, which saw Ethereum get dangerously close to the $2,000 critical threshold, and the coin’s rather lacklustre performance compared to Bitcoin’s run last year, whales seem to be determined to supplement their portfolios with fresh ETH. This means that large investors are confident in Ethereum’s ability to recover and foresee a possible price surge in the near future.

The current optimism, backed not only by whales but also by the bullish sentiment related to a potential spot Bitcoin ETF approval by the U.S. Securities and Exchange Commission, could drive Ethereum’s price higher and help it catch up with the crypto king.

However, there’s also a less optimistic theory stemming from this ongoing whale accumulation. Certain analysts believe that it’s not renewed optimism in further price increases that’s been prompting whales to increase their ETH holdings but the desire to influence the market. With a significant percentage of Ethereum’s supply concentrated in the hands of just a few influential wallets, concerns of market manipulation loom large in the crypto community. Ethereum is no stranger to volatility triggered by whale activity. Although this has generally driven the ETH price up, there’s no guarantee that the impact will be positive this time around.

Wrapping up

As Ethereum whales are boosting their holdings, speculations regarding a potential bull run as well as concerns related to market manipulation seem to dominate the crypto narrative at the moment. However, most traders and investors are happy to see Ethereum hold steady above $2,200 and hope that the asset is going to maintain an upward trend in the future.

Comments are closed.