Ethereum, too, has been hit hard by the market-wide downturn. However, investors use the price reset and buy the coin intensively.
ETH Whales own more than 20% of Ethereum Stock
Buy when others are anxious, and sell when others are greedy. It is precisely this principle that Ethereum whales are currently pursuing, that is, owners of large volumes of the second-ranked cryptocurrency by market capitalization.
As data aggregator Santiment comments, the whales are heavily accumulating Ethereum after the coin has fallen below $ 2,000. Overall, the largest ETH whales now hold almost a quarter of the total Ethereum stockpile, Santiment said.
Demmach now owns 20.58% of the available Ethereum supply in the ten largest Ethereum wallets. Home:
“The top 10 largest Ethereum addresses now own the highest percentage of total ETH supply (20.58%) since May 2017. After dropping to 18.46% after the all-time high, they have now amassed 2.12% more of total ETH supply in the last 41 days.“
It is considered a bullish sign if investors with large amounts of Ethereum continue to accumulate coins. Because: This illustrates their belief that the cryptocurrency will continue to rise. In addition, ETH holdings on centralized exchanges have recently fallen to their lowest level since 2018. As Santiment’s researchers point out, this reduces the likelihood of a short-term sell-off.
However, even apart from accumulating whales, there is positive news on Ethereum. Crypto analyst Lark Davis is currently drawing attention to this in a tweet.
Data shows great confidence in ETH 2.0
Davis writes to his more than 414,000 Twitter followers: The amount of Ethereum in the ETH 2.0 deposit contract exceeds the amount of Ethereum miners mine. In his estimation, this is bullish as it also signals confidence in the upcoming upgrade to Ethereum 2.0. analyst:
“Ethereum 2.0 has 195,878 validators staking the network with a total of 6.268 million ETH. Currently, we see more Ethereum flowing into the Ethereum 2.0 network per day than is being mined. BULLISH!“
Background Ethereum 2.0 (ETH 2.0): ETH 2.0 is the biggest update to date for Ethereum (to buy from eToro or Libertex). It was introduced in December 2020 and is gradually transitioning from the previous proof-of-work consensus mechanism (POW) to a proof-of-stake mechanism (POS). This allows blocks to be processed more energy-efficiently and thus more environmentally friendly. According to a new analysis by the major bank JPMorgan Chase & Co., the staking industry could grow from $ 9 billion now to $ 40 billion by 2025 by switching to the POS consensus mechanism.
Currently, Ethereum is traded at $ 1,932. ETH has fallen around 4.22% in 24 hours, and almost 19% in the last seven days.